An interesting expiration Friday as the Dow fell 205 points on average volume.  The advance/declines were 3 to 1 negative.  Earnings disappointments were the norm for today.  The S&P 500 is right back to the 50 day moving average and the technicals have rolled over.  It appears that we are going to head lower.  My call for new yearly highs looks like another bad idea on my part.  I expected some weakness next week but not of this magnitude.  The uptrend line that has been in effect since June has been broken and the next support that I see is at around 1420 and then 1400 if that doesn't hold.  Anything could happen but todays action changes the near term tone of the market.  GE fell on its earnings report.  It was down 3/4 on heavy volume.  On the weekly chart here the uptrend line is at $21.50.  That line has been in effect since late 2011.  It is important that we stay above that level on a weekly closing basis or it could spell trouble for the overall markets.  That's my thoughts there at the moment.  Gold fell $20 on the futures as the US dollar was higher on the day.  However the gold shares did not follow as the XAU only lost 1/4.  ABX, GG and NEM were mixed with fractional moves.  The volume here picked up and they closed well off of their lows of the day.  Money sought the gold shares as a safe haven today in my opinion.  I left in the open order for the January ABX calls.  I noticed extremely heavy volume in the January 42 ABX calls today.  If the open interest expands on Monday it would be a positive sign.  The same type of action occurred in the ABX calls prior to the August-September run up.  I'm still a believer in the gold shares moving higher in the medium term future.  I could be wrong and often am.  Mentally I'm feeling OK.  Today was possibly a game changer for the overall stock indices.  The tech shares are leading the way down.  If the bank shares roll over here as well, we will probably be in a longer term decline.  Hasn't happened yet.  The fact that gold sold off today also makes the possibility of asset liquidation look real.  I'm going to try and purchase some gold share calls next week.  That is the game plan as of right now.  I'll be checking all the charts over the weekend to decide the best course of action.  I'll also be watching the financial media to see the reaction to todays sell off.  If the tone is bullish then we are most likely headed lower.  For now it's Friday afternoon and time for a rest. 

A bit lower today as the Dow fell 8 points on good volume.  The advance/declines were slightly negative.  The summation index is heading higher.  The overall market was weaker than the Dow.  Getting short term overbought on the technicals for the stock indices.  That doesn't mean that we can't go higher though.  The NASDAQ had a big dip thanks to Google.  I'm not sure that means anything going forward.  I still think that the presidential re-election rally is in place.  GE was off 1/8 on average volume.  The earnings should be a factor tomorrow.  I have no idea what will happen there.  Todays daily chart candlestick was bearish though.  Gold fell about $8 on the futures as the US dollar was higher.  The XAU fell 5 points and closed practically on its low.  That's bearish going forward.  ABX, GG and NEM all lost a buck or more on what passes for average volume lately.  I dropped the strike price on my open order for the January ABX calls.  I would ideally like to purchase some gold share calls next week.  I believe that we'll see some overall market weakness next week and the gold shares should follow.  I could be wrong.  That is the game plan at the moment.  Mentally I'm feeling a bit tired.  Expiration Friday on tap with a bunch of earnings reports as well.  Perhaps we'll see some volatility.  Otherwise it's a wait and see mode for me at the moment.  I might switch to the December gold share calls but that is something that I'll consider over the weekend.  We'll see what comes out of Europe overnight and go from there.

Just hanging around today as the Dow gained 5 points on average volume.  The advance/declines were 2 to 1 positive.  The overall market was stronger than the Dow.  The summation index is heading higher.  The Obama re-election rally lives on.  Look for new yearly highs in the S&P 500 in the next few days.  The positive expiration week bias remains in effect.  No telling how long this uptrend will last but higher is the path of least resistance for now.  GE was up 1/4 on light volume.  A waiting game on the earnings here.  A good number could propel this issue to new yearly highs as well.  Gold gained $6 on the futures as the US dollar was lower again.  The XAU rose 2 1/8.  ABX, GG and NEM all had fractional gains on light volume.  I'm leaving in the January ABX call open order for now.  Mentally I'm feeling OK.  A European summit meeting tomorrow will grab the headlines and could possibly be a market mover.  The market is trending higher regardless.  We could continue to the upside until the US presidential election.  That's a guess as usual.  The gold shares continue to outperform the price of gold itself.  That remains a positive going forward.  We'll  keep an eye on the overseas markets and go from there.     

Continuing higher as the Dow gained 127 points on average volume.  The advance/declines were 3 to 1 positive.  Getting some OEX calls yesterday was the obvious trade that I failed to do.  Once again an opportunity has been wasted because I simply did not want to take the risk.  No risk, no reward in this game.  The summation index could turn back to the upside with todays numbers.  It appears that the stock indices want to rally into the election, which discounts an Obama victory.  2 solid up days are the beginning of a trend, as there are not any apparent sellers so far this week.  GE was flat on the day and the volume wasn't anything special.  Probably just waiting for the earnings on Friday here.  Gold bounced back as the US dollar was weaker today.  The yellow metal futures were up over $10 today.  The XAU gained 3 3/4.  ABX up a buck, GG added 1/2 and NEM led the way higher by 1 1/4.  Volume was light but the price action was positive.  I've left in the open order for the January ABX calls but we may start to rally in the gold shares as well.  The daily candlestick charts look constructive to the upside with todays action.  Perhaps the November calls are in order here.  Mentally I'm feeling a bit tired, could have slept better.  The positive expiration week bias remains as we have gained over 2oo points in the first couple of days this week.  Not taking advantage of that is painful.  But you have to move on.  It looks like new yearly highs for the stock indexes are coming soon.  The gold shares are outdoing the price of gold once again and that is a positive moving forward.  ABX, GG and NEM should follow the overall market higher unless we see some sort of breakdown in gold but I don't see that happening.  Gold is still attracting capital.  We'll see what happens tomorrow after tonights second presidential debate.  That may or may not influence the price action on Wednesday.

We got a bounce today as the Dow gained 95 points on average volume.  The advance/declines were 2 to 1 positive.  Some upside was expected and the next question is whether we can sustain it.  The market did rally in the last hour which is a positive going forward.  We've held the 50 day moving average on the S&P 500 daily charts.  The summation index is still moving down but that could change with another day like today.  There is a school of thought that says that we will rally into the election because of the re-election of Obama.  That could be true.  But we'll stick with the technicals and they are oversold and starting to move up on the stick indices.  So there is room to go higher.  GE was up 1/8 on light volume.  No trades here and the earnings are due on Friday.  Gold fell today as the futures lost over $20, breaking support.  The US dollar was lower as well.  The XAU sold off early but followed the overall market back to finished up 1/4.  The gold shares outperformed gold itself and that bodes well for the gold shares moving forward.  ABX, GG and NEM all had fractional losses on light volume.  I still have the open order in for the January ABX calls.  I'd like to see it filled before the earnings come out on November 1st.  May or may not happen.  Mentally I'm feeling a bit tired, did not sleep well.  The positive expiration week bias looks intact after todays market action.  But we still have the rest of the week to go.  Plenty of earnings being reported this week along with a number of economic reports.  Time will tell if this is the beginning of a new leg up for the stock indexes.  I'm not sure one way or the other but we could rally into the expiration.  After that, we'll have to wait and see.  Gold broke down today on the daily chart.  The technicals are just getting oversold.  The 50 day moving average could act as support and that comes in at around $1710.  I'm still a believer in higher prices going out in time.  But for now it appears that gold is going to take a rest.  I'd still like to get some gold share calls though.  We'll see if the stock indices can follow through to the upside tomorrow.  

We closed the week with a whimper as the Dow gained just 2 points on pretty light volume.  The advance/declines were almost 2 to 1 negative, the opposite of yesterday.  Summation index heading lower.  The overall market was weaker than the Dow.  Short term oversold and a bounce is overdue.  The S&P 500 is trying to hold its 50 day moving average on a daily basis.  The Dow as well is trying to hold on here but it has broken the uptrend line that began in June.  The over the counter markets remain above their uptrend lines.  It's a mixed bag but we are oversold and expiration week is coming up with its usual upside bias.  GE was flat and the volume was light.  It's possible that we are trying to put in a short term bottom here at around 22.50.  Gold was weaker on the day as the futures fell over $10.  The US dollar was weaker as well.  The XAU dropped 3 3/8.  ABX off 7/8, GG lost 2/3 and NEM down 3/8.  Volume was very light.  I canceled the open order for the November ABX calls and left in the order for the ABX January calls.  I may try the November calls again next week.  Earnings for ABX are due on November 1st.  Mentally I'm feeling a bit tired, could have slept better.  The weekly chart for the S&P 500 now has a bearish engulfing candlestick and the technicals have rolled over.  Perhaps we'll see some more weakness next week but I do believe that we will see some type of bounce first.  I could be wrong and often am.  I'm choosing not to take any risk there for now though.  I could change my mind over the weekend.  I still like gold for higher prices going forward but if the overall market falls here, the gold shares will probably follow.  I don't have any problem going out to January with the options.  But like anything else, it's just a guess.  I'm willing to take the chance here though.  The gold share weekly candlestick charts look bearish here as well, with the exception of NEM.  I'll have to double check the charts over the weekend.  For now it's Friday afternoon and time for a break.

We tried to hold onto the gains made early today but could not.  The Dow lost 18 points on average volume.  The advance/declines were 2 to 1 positive though.  Short term oversold and a bounce is coming.  The indices were mixed today.  I'd expect some type of rally attempt tomorrow into early next week.  We are still right at the uptrend line for the S&P 500 and I expect it to hold for now in the short term.  But if it doesn't, the game will have changed.  Hasn't happened yet.  GE had a slight gain and the volume was very light.  No trades here for now.  Gold was up $5 on the futures as the US dollar lost some ground today.  The XAU gained 7/8.  ABX and GG had fractional losses, while NEM was up 1/2.  Volume remains light here.  I adjusted down the price for the November ABX calls again.  I also placed an open order in for some January ABX calls.  I am now thinking that October could be a consolidation month for the gold shares.  That's a guess as usual.  Mentally I'm feeling OK.  6 days to go in the October option cycle.  If I had the guts, I'd be willing to try the OEX calls tomorrow on any weakness.  The problem there is that if we break the uptrend line in the S&P 500, we'll be heading lower rather quickly.  The summation index is heading lower as well so I'm not willing to take the risk.  Gold is still meandering around here.  I'll keep an eye on Europe overnight and take it from there.

We are right at the point of ending the months long rally as the Dow fell 128 points on light volume.  The advance/declines were negative.  The S&P 500 is sitting on the uptrend line that began in June.  The summation index continues lower.  On the plus side, we haven't broken down yet.  We are also short term oversold.  Plus the advance/declines for today were not as bad as a down 128 point market.  The overall market was stronger than the Dow as well.  But we are at a point in time where things might change and we have to be aware of that.  GE was off 1/4 on light volume.  It looks like we are rolling over here and that would not be bullish for the overall stock indices.  Gold was flat on the day as was the US dollar.  Waiting on a meeting in Europe tomorrow is my guess.  The XAU gained 1 1/3.  ABX, GG and NEM were mixed with slight moves one way or the other on light volume.  I left in the open order for the November ABX calls after adjusting the price lower.  I am also looking at going out to the January calls here.  ABX is trying to hold the $40 level and a break of that should take us to the 50 day moving average at the $38.5 level.  That may actually be the spot to get long.  All just theory there.  I remain a longer term believer in higher prices for gold and the gold shares.  Mentally I'm feeling a bit tired, did not sleep well.  Just as today was important, tomorrow is even more so.  We probably should bounce but after that it could get dicey.  What I'm saying is that being careful here would not be a bad idea.  That said, the decline could also be done and now we rally to new yearly highs.  Take your pick but I think we'll know pretty soon what is going to happen.  Gold is still holding up pretty good for now as the US dollar is at an important juncture as well.  Any strength in the dollar will break through a down trend line that has been in effect since late July.  It is something to keep an eye on with respect to gold and the stock indexes as well.  We'll see what tomorrow brings.

Weakness today as the Dow fell 110 points on light volume.  The advance/declines were 3 to 1 negative.  The summation index will be back to heading lower.  We closed almost on the low of the day for the S&P 500 and that isn't exactly bullish.  A decline in the early part of this week was expected.  The uptrend line from June comes in at around 1435.  We need to hold on there or the game will be changed.  Haven't broken it yet but beware if we do.  1435 would be a logical spot to get some calls if you were so inclined.  I've had a bullish stance on the overall market for a while but the technicals have rolled over.  I'm on the sidelines with regards to the OEX as the time to buy the puts there has probably already passed.  GE fell 1/3 on average volume.  The same story here as the technicals are heading south.  No trades here for me now.  Gold fell $10 on the futures as the US dollar had a good day.  The XAU dropped 4 points.  We've got the technical rollover here as well.  ABX off 7/8, GG fell 1 1/2 and NEM down 1 1/4.  Volume remained light.  I adjusted down the strike price for the November ABX call order.  I will have to ponder this trade tonight because if the overall market starts to fall here, the gold shares will most likely follow suit.  Mentally I'm feeling OK.  Important session tomorrow for the stock indices in my opinion.  We're not overbought or oversold at this juncture, so anything is possible.  I'd like to see the rally continue but that doesn't mean that it will.  So we'll see what happens.  I'm still a believer for higher gold prices in the future.  However this market can get moving pretty fast one way or the other at times.  If we break down from these levels it could get ugly pretty fast.  Again, hasn't happened yet and I'm still ready to try the gold share calls here.  Perhaps going further out to January is a possible trade.  I'll consider that tonight as well.  We'll watch how the foreign markets react to todays US stock index action and go from there.  

It was a semi-holiday today as the bond market was closed for Columbus Day.  The Dow fell 26 points on extremely light volume.  The advance/declines were negative.  I expect a bit of weakness in the early part of this week.  After that, who knows?  Not a lot of economic data out this week.  The trend is still up.  GE fell almost 1/4 on the same very light volume.  We're still overbought on GE, so there is room to head lower near term.  That doesn't mean that will happen but the technicals won't remain overbought forever.  Gold lost $5 on the futures as the US dollar was a bit higher.  The XAU fell 1 1/2.  ABX, GG and NEM all had fractional losses on the very light volume.  Still moving sideways here.  I did place an open order for some ABX November calls.  This will be my next trade if it gets filled.  This is the idea for now but that could change going forward.  Mentally I'm feeling OK.  I'm still a believer in new yearly highs for the S&P 500 going forward.  We've been moving sideways for 3 weeks.  No uptrend lines have been broken.  Earnings season is upon us.  Gold is moving sideways as well.  If and when we get through 1800 should signal the next up leg.  Patience is required for now.

A mixed market once again as the Dow gained 35 points while the overall stock indices were weaker.  The advance/declines were positive and the volume was light.  We rallied on a better employment percentage number early in the day and then sold off for the remainder of the session.  There was a huge drop in the rate of unemployment but by now we all know that these numbers are byproducts of government.  The group in power would like to remain so and an election is imminent.  As traders we only care how things affect the market, regardless of the party in the White House.  The fact that the rally could not sustain itself could be a negative in the short term.  The summation index was higher yesterday but not by much.  The stock indexes are approaching short term overbought.  GE was up 1/8 on light volume.  GE is saying that the rally here still has legs.  I can't argue with that yet.  Gold fell $15 on the futures and the US dollar closed the day about unchanged.  The XAU dropped 2 points.  ABX and NEM had slight fractional losses, while GG was unchanged.  Volume was very light.  I'll be looking at the gold shares closely over the weekend to try and come up with some type of game plan for next week and beyond.  I'm still a believer in higher prices for the precious metal shares.  Mentally I'm feeling OK.  Todays market action does not look positive going forward in the short term.  We could not hold the early gains.  Of course that could all change on Monday but I really don't think that it will.  I could be wrong.  I'll be checking the charts closely over the weekend.  2 weeks to go in the October option cycle.  Gold had a slight sell off today but the fundamentals remain in place.  We've been overbought here for quite a long time and perhaps it is finally time for gold to take an extended rest.  We've been moving sideways for 3 weeks.  I'm not exactly sure here and will ponder this over the weekend.  For now it's Friday afternoon and time for a break. 

Moving back to the upside as the Dow gained 80 points on average volume.  The advance/declines were almost 3 to1 positive.  We've worked off the overbought condition in the stock indices.  Higher prices are the next logical conclusion.  Todays action should send the summation index back to the upside.  We should hit new yearly highs for the S&P 500 in the next couple of days.  I'll go out on a limb and say that tomorrows employment report won't make a difference.  We'll probably move higher regardless.  That's my guess at the moment.  GE was little changed on average volume.  No trades there for now.  Gold moved higher on a weaker US dollar.  The gold futures rose $16.  The XAU gained 5 1/2.  ABX and GG tacked on over a buck, while NEM added 3/4.  Volume was light.  It looks as though I've missed the chance for the October gold share calls.  The XAU closed on its high and should continue to the upside tomorrow.  I still may try the November ABX calls.  Mentally I'm feeling OK.  The OEX calls a couple of days ago looks like another missed opportunity.  Of course that's always easy to say after the fact.  Like I've said before, no uptrend lines have been violated in the stock indexes so the trend is up.  Gold continues to attract capital.  That trend remains in place.  The same things that have been working continue to work.  We'll look to the unemployment report tomorrow for direction but it may be to the upside now matter what.  We'll see.    

Muddling through the days here as the Dow rose 12 points on what now passes for average volume.  The advance/declines were even.  The overall market was stronger than the Dow again.  We also rose in the final hour and that is short term bullish.  Not much for me to say here as it appears that we are simply in a holding pattern awaiting the Friday employment report.  I'm sticking with my bullish resolution.  I may try the OEX calls tomorrow on weakness.  GE was up 1/8 on light volume.  Nothing doing here but we remain overbought.  Gold was up a bit today as was the US dollar.  The XAU fell 2 3/4 as the gold shares diverged from the precious metal.  ABX, GG and NEM all had fractional losses on very light volume.  I have yet to put in an open order for some calls here as we haven't reached an oversold condition.  However I will be getting some calls eventually because the trend here is up and I don't think that it's over.  Mentally I'm feeling OK.  So we wait for Friday and that is the next market moving event.  A little over 2 weeks left in the October option cycle.  My thinking remains that higher prices are in the offing but I could be wrong.  The summation index continues lower but prices haven't followed.  The uptrend lines on the indices have not been violated yet either.  The presidential re-election rally remains in place.  Gold has been moving sideways for 3 weeks.  A rally in the stock market may not mean a rally in gold though.  We are almost back to the uptrend line in gold that now is at the 1760 level.  We'll see if it holds.  

Another mixed bag today as the Dow fell on light volume.  The advance/declines were positive.  The overall market was stronger than the Dow today.  I really feel that we are about to take off to the upside soon.  We've had plenty of time to fall here but it just isn't happening.  I think that I will look at the October OEX calls tomorrow to try and find a trade.  We've been moving sideways for a week and it is time to get going.  I could be wrong but I don't think so.  GE was off a touch on average volume.  No trades here for now.  Gold fell $7 on the futures and the US dollar was lower a bit as well.  The XAU fell 1 1/4.  ABX, GG and NEM had fractional losses on light volume.  The gold shares have been moving nowhere for a couple of weeks since the huge move that began in August.  I'm still a believer in higher prices here.  I'm not sure if I'll try the October or November gold share calls though.  Mentally I'm feeling OK.  It could be that we are just waiting for Fridays employment report at the moment.  The summation index continues lower but I am guessing that it will turn around soon.  When markets drop, they usually go straight down and we have been hanging around now for a while.  A short squeeze rally could be in order.  Gold is hesitating but the underlying fundamentals for higher prices haven't changed.  We'll see what happens tomorrow.

A mixed market today despite the 78 point rise in the Dow.  The NASDAQ showed a slight loss.  The advance/declines were positive.  Volume was light.  We should be seeing a rise here in my opinion, ahead of the employment report on Friday.  But the action lately has been sloppy.  The summation index continues heading lower.  I'm sticking with a bullish stance unless we break the uptrend line in the S&P 500 at 1420.  GE was up 1/8 on average volume.  As long as GE continues higher it should bode well for the stock indices.  Gold was up almost $10 on the futures today as the US dollar was lower.  The XAU rose 1 1/8.  ABX and GG showed slight gains, while NEM had a fractional loss.  Volume was light.  I'm still considering the October gold share calls but have not put in another order just yet.  I may go out to November here.  Mentally I'm feeling OK.  It's never a good sign when the Dow is the strongest index and the over the counter market lags.  That's what we got today.  It's a short term negative in my opinion.  The technicals here are getting mixed, which makes for a tough directional call.  But like I said before as long as 1420 holds on the S$P 500, I'll still look for higher prices.  It's still a presidential re-election rally for now.  Gold is still above the uptrend line from mid-August.  The short term technicals for gold remain overbought.  We'll check the overseas markets overnight and go from there.

We closed out the month to the downside as the Dow fell 49 points on light volume.  The advance/declines were negative.  I would have liked to have seen some follow through to the upside following yesterdays gains.  But it didn't happen.  I still think higher prices are coming and that we will take out the recent highs in the S&P 500.  But I could be wrong.  The summation index is pointing down.  We are short term oversold here on the stock indices but we haven't gotten a decent bounce.  Perhaps the beginning of the month money flows on Monday can get us going to the upside.  No major trend lines have been broken so I'm sticking with a bullish stance.  GE lost just a touch and the volume was heavy.  We're not short term oversold here, in fact it's just the opposite.  I'm not looking to trade GE here.  The gold futures fell $6 on the day as the US dollar had a decent move to the upside.  The fact that gold didn't drop that much lets you know that the money simply continues to flow there despite being overbought.  That won't last forever but you cannot fight it.  The XAU was off 1 1/8.  ABX, GG and NEM all had fractional losses on average volume.  I canceled the open order for the October ABX calls.  No need to leave that out there over the weekend.  I'll consider what to do in the next couple of days and then decide whether to place another order.  I'm pretty sure that I will but perhaps at a different strike price or price.  Mentally I'm feeling OK.  As usual the question is where do we go from here for the stock indexes.  I'm still a believer in higher prices.  We've got plenty of economic data out next week with the employment number on Friday.  So we will see where the market takes us.  Gold remains an attractive place for money to go from what I can see.  Nothing has stopped that trend yet.  I will look over the charts this weekend and try and come up with some type of trade for next week.  For now it's Friday afternoon and time for a break.

Back to the upside today as the Dow gained 72 points on light volume.  The advance/declines were 3 to 1 positive.  The overall market was stronger than the Dow.  I expect further upside tomorrow.  The only negative today was the light volume.  However positive market action was due and it showed up.  We will most likely set new highs for the year in the S&P 500 on this leg up.  That is my guess at the moment.  With GE having a very good day I believe that this will help lead the market higher.  GE gained 2/3 on good volume.  Today GE set a new high for the year and I think the overall market will follow.  Still overbought on GE but that is a condition that could last for a while.  Gold had a good day on the weaker US dollar.  The precious metal futures rose $26.  The XAU gained 5 2/3.  ABX up 7/8, GG higher by 1 1/3 and NEM higher by 1 1/4.  Volume was OK here.  It looks like that I've missed the chance to get long the gold shares this week as my open order wasn't filled on the decline yesterday.  I'm leaving in the October ABX call order for now but I doubt that it will be filled.  Mentally I'm feeling OK.  The presidential re-election rally is still in place.  We should continue higher into the beginning of November.  After that, it's anybodies guess.  Gold should continue higher as well and it is.  We'll probably see new highs on this leg up but I don't know when that will occur.  Any pull back in the gold shares looks like it can be bought.  The money continues to flow there.  We'll end the week, the month and the quarter tomorrow. 

Continuing lower today as the Dow fell 44 points on light volume.  The advance/declines were negative.  The overall market was weaker than the Dow.  As much as I have remained bullish here and still believe that a decent up day is coming soon, I cannot ignore the recent market action.  We're oversold and staying there.  That can be a dangerous condition.  The summation index is heading lower, implying lower prices.  I can't say that I have a good feel for what is happening right now.  European worries have finally resurfaced, so we could once again go into a headline driven environment.  This is a problem that isn't simply going to go away.  I have no OEX trades in mind at the moment.  GE was off 1/4 on light volume.  I'll hold off on any trades here for now as well.  Gold fell $12 on the futures as the US dollar had a bit of strength.  The XAU sold off hard early but made it back to finish the day higher by 2/3.  ABX was flat, while GG and NEM had slight gains.  Volume was average.  The fact that the gold shares were able to come back after early morning losses is encouraging going forward.  I'm leaving in the open order for the October ABX calls.  Gold itself remains above the critical 1740 level.  Mentally I'm feeling a bit tired, did not sleep well.  The S&P 500 remains above the uptrend line that began in June, so despite the recent swoon no real technical damage has occurred.  If we somehow break that line, then the game changes.  Hasn't happened yet.  Gold is taking a rest here and I expect the uptrend there to continue.  The only problem for the markets here is if we would all of a sudden fall apart in an already oversold condition.  I think the possibility of that is slim but what do I know?  I'll continue to leave the order in for the gold share calls unless we break 1740 in gold itself.  If that happens I'll have to reassess the situation.  All eyes will be on Europe tonight so we'll see what happens. 

A one day reversal to the downside today as we opened higher and closed lower.  The Dow fell 101 points and the volume was nothing special.  The advance/declines were almost 3 to 1 negative.  The summation index has turned lower.  I was expecting higher prices near term and it hasn't happened.  I still think we will see a decent move up within the next couple of days.  That's what my technical work is saying.  I could be wrong.  No real reason for todays lower prices but we fell off in the last hour and that isn't bullish going forward.  The uptrend line in effect since June has not been broken.  GE was off a touch on better volume.  I'll wait until we get back to the 50 day moving average and go from there.  Both the gold futures and the US dollar were up slightly today.  However the XAU lost 3 1/8.  ABX, GG and NEM all had fractional losses on average volume.  I'm leaving in the open order for the October ABX calls for now.  The uptrend line for the XAU comes in around the 180 level.  We aren't there yet.  I don't think that we are beginning a huge decline in gold but with gold you never know.  Things could get volatile.  I'm still a believer in higher prices going forward though.  Mentally I'm feeling OK.  We'll have to see if we get any follow through to the downside in the stock indices tomorrow.  Perhaps my take on things is wrong here but no technical damage has occurred yet.  I still think we should rally into the November election.  Even if gold decides to take a rest here I think it will be a chance to get the calls once again.  On the daily gold chart 1740 looks to be the key level that should hold.  If not then I will have to readjust my thinking.  We'll see what tomorrow brings.   

A lower start to the week as the Dow fell 20 points on light volume.  The advance/declines were negative.  Still basically moving sideways for the S&P 500.  I continue to believe that this is simply a pause before we head higher.  I see nothing to change that view for now.  Plenty of economic data out this week so maybe that will get things moving.  GE was off 1/8 or so on light volume.  I'll get the calls here when we get to the 50 day moving average, when and if that happens.  Otherwise it's a waiting game.  Gold fell today, the futures dropped $13 on a slightly higher US dollar.  The XAU lost 6 1/8.  The gold shares underperformed today.  ABX off 1 1/2, GG down 1 7/8 and NEM lost a buck.  Volume was average.  The gold shares were due a pullback and this is probably the start.  I've placed an open order for the October ABX calls since I believe that we will head back up to test the highs again before the end of the October option cycle.  No real hurry though as I have priced the ticket away from todays premium.  If ABX continues to drop the order may be filled.  Mentally I'm feeling OK.  I saw a lot of press this weekend about the divergence of the Dow transports, which I mentioned last week.  When everybody sees the same thing in the markets it usually doesn't mean anything.  We'll see.  The transports got a bounce today.  My work actually shows that we should see a move up in the stock indices this week despite the overbought conditions.  Time will tell soon on that.  Haven't had any news from Europe in a while to get things going.  End of the month and the 3rd quarter coming up on Friday.  We'll keep an eye on things overnight and go from there.

A slight one day reversal to the downside as the Dow opened higher and closed lower.  The major average finished the day with a loss of 17 points on expiration good volume.  The advance/declines were positive.  I think we are just waiting for the next leg up at this point.  I've been expecting some end of September weakness and it is just not happening.  The Dow transports continue to fall though.  I don't have any trades in mind for the OEX at the moment.  GE was up 1/8 on average volume.  I'm waiting for an entry point there as we are both short and medium term overbought.  Or you could just say that I missed the move higher unless we simply continue to move straight up.  Gold gained $7 on the futures as the US dollar lost just a touch.  The XAU was up 1 3/4.  Remaining very overbought here on a short term basis.  I really cannot try the calls here unless we work off some of the overbought condition.  ABX and GG had fractional gains, while NEM had a fractional loss.  Volume was good.  I'm still keeping an eye on the October calls for the gold shares.  Mentally I'm feeling OK.  There still aren't a lot of sellers of stock here.  The presidential re-election rally remains in place.  Rallies can last longer than you think and that seems to be the case with this one.  Gold continues to move higher and there aren't any sellers there either.  I'll simply have to try and remain patient.  We'll start the October option cycle on Monday and go from there.  It's Friday afternoon and time for a rest. 

Still consolidating the gains here in my opinion as the Dow gained 19 points on light volume.  The advance/declines were negative.  Sold off early and came all the way back.  Overbought, staying there and that hasn't changed.  The Dow transports have sold off hard this week while the Dow itself hasn't.  That's a divergence that shouldn't be ignored going forward.  The fact that oil dropped this week and the transports didn't rally makes you wonder as well.  But as long as the stock indices go higher, there is nothing that says they just can't keep on doing that.  Any pull back will be bought most likely.  GE was up over 1/8 on OK volume.  GE continuing to the upside bodes well for the overall market as well.  I'd like to get the calls here but not until we get back to the 50 day moving average if and when that happens.  Gold was flat today despite a rise in the US dollar.  That's bullish going forward.  The XAU dropped 1 1/3 though.  ABX, GG and NEM all had fractional losses.  Volume was average.  Like the overall market, there is nothing stopping the gold market from moving higher.  We're very overbought here and it hasn't mattered.  It will at some point but trying to figure out when that will be is a guessing game.  Mentally I'm feeling OK.  September expiration tomorrow and my guess is that we'll be higher.  Sometimes when the beginning of September is strong the second half is weak.  That hasn't happened yet for this year.  The gold shares have gone straight up for two months.  This won't last forever either.  I'm a buyer on a pullback when that eventually happens.  For now it's patience and a waiting game for the next trade.

We bounced around a little today but not much on the end result as the Dow gained 13 points on light volume.  The advance/declines were positive.  The technical story for the stock indices remains the same.  My thinking is that the recent sideways action is simply another pause before we head higher.  But I could be wrong and often am.  Still, I think we'll head up from here.  GE was up about 1/4 again on light volume.  Very overbought here on a short term basis but have been for a while.  Won't last forever.  Gold was flat on the futures today as the US dollar fell just a touch.  The XAU gained 1 3/4.  ABX, GG and NEM all had fractional gains on average volume.  Very overbought on the gold shares as well but there are no sellers.  I'd still like to try the October gold share calls if I get the chance.  Mentally I'm feeling OK.  The trend remains up for the stock indexes.  The summation index is moving higher.  There really isn't any overhead resistance and any decline will probably be bought.  We should keep moving up into the November election.  The market is telegraphing an Obama victory.  The market action is consistent with the president being re-elected.  The worlds central banks have indicated that they will print as much money as needed to keep the game alive.  That is extremely bullish for gold going forward.  The gold shares continue to outperform the precious metal.  That is bullish for them.  Just 2 days left here in option expiration week.  We really haven't seen any volatility yet.  We'll watch what happens overseas tonight and go from there.

Not much volatility yet for expiration week as the Dow gained 11 points on light volume.  The advance/declines were negative.  I still think we'll go higher this week but there really isn't a catalyst for prices yet.  Still overbought on the stock indices.  No need to risk a trade anymore in the September option cycle.  GE was up almost 1/4 on light volume.  Overbought, staying there and who knows how long that will last?  October GE calls on a pull back is the plan for now.  The gold futures were flat on the day which represented a comeback from the sell off in yesterdays aftermarket.  The Dollar showed a gain again today but the precious metal did not sell off.  This is a positive going forward.  The XAU gained 1 1/2.  ABX, GG and NEM had fractional moves one way or the other.  Volume was average.  Very overbought here but that can last a while in an extended up move.  That appears to be what's happening here.  Any sell off in gold or the gold shares can be bought.  However it seems everybody knows this already, hence no sell off.  I'm going to wait for some weakness though.  Mentally I'm feeling a bit tired.  I'm still in a wait and see mode.  I believe that the end of this month will produce some weakness but not necessarily this week.  The summation index is still heading higher.  Gold is practically going parabolic here and that is a dangerous thing to chase.  I have to wait for some weakness here.  A quick decline in gold would most likely set things up for the next rise.  That's a guess as usual.  Gold has gotten a lot of attention lately and that could be a precursor to a cooling off period.  We'll see what tomorrow brings.
 

A weekend hangover Monday as the Dow fell 40 points on light volume.  The advance/declines were 2 to 1 negative.  We made a bit of a comeback in the final hour.  The market still has the feel of wanting higher prices although we remain overbought on a short term basis.  Expiration week usually has a positive bias so we'll have to see if it holds true for September.  Some economic data out this week.  However all the news from the Fed and the ECB is already out.  We will have to wait and see where the next catalyst comes from.  GE was off a touch and volume was heavy.  I'm still considering the October calls here on some type of pullback.  Not yet though.  Gold was off a couple of bucks on the futures and $10 more in the aftermarket.  The US dollar was just a bit higher today.  The XAU was down 1/3.  ABX and NEM had fractional losses, while GG was flat.  Volume was average.  Gold really needs to take a rest as it has remained overbought for a couple of weeks.  I will attempt the gold share calls again on a pullback but must try and remain patient for now.  Mentally I'm feeling OK.  4 days left in the September options and it probably wouldn't be wise to try anything there.  I think that I will have to simply let this week go by trading wise.  But we'll see.  Perhaps if gold takes a rest I can make a trade there.  I'm leaning towards a wait and see attitude for now.    

The rally continues as the Dow tacked on another 53 points on heavy volume.  The advance/declines were 2 to 1 positive.  All signs point to higher prices as the stock markets attract capital.  Liquidity abounds.  There is plenty of money to go around the world.  In some sense it doesn't matter what the economy does for a while as long as the flow of money continues into stocks.  Price and volume confirm the move higher.  I'd expect the upcoming expiration week to have a positive bias.  GE up 1/8 and the volume very heavy once again.  If we can back back close to the 50 day moving average on a daily basis, I'll probably give the October calls a look.  Overbought and staying there for now.  Gold was up a bit on the futures.  The US dollar has completely broken down.  If we get a snap back in the dollar perhaps gold will drop and that could be the next entry point for the precious metal.  Or we might just continue going parabolic.  The XAU gained 5 1/3.  As long as the gold shares outperform the metal itself all systems are a go for higher prices.  ABX and GG gained 3/4 while NEM added 1 3/4.  Volume was very heavy once again.  I'm going to try and be patient before attempting the calls here again.  But we are going higher here as well.  Mentally I'm doing OK.  With only 5 days remaining in the September option cycle I probably will not be trying a short term trade.  It is hard to watch the gold shares rally when I sold mine early but I have been down this road before.  There will be a reaction and another chance at the calls but I'm going to have to wait for it.  I'll be checking the charts over the weekend.  For now it's Friday afternoon and time for a break.

The Fed delivered today as the Dow soared 206 points on good volume.  The advance/declines were almost 4 to 1 positive.  QE3 has arrived on schedule.  Summation index moving higher.  Technically there is nothing in the way for even higher prices on the stock indices.  Declines can still be bought.  We should move up into the September option expiration.  Perhaps we'll stall after that but I do not see any huge declines on the near term horizon.  I've missed the chance to get the September OEX calls unless we get a short term pullback.  There are only 6 days left for the September option cycle, so the risk in any trade there is high.  GE was up 1/8 on extremely heavy volume.  Overbought, staying there and that sounds like a broken record.  We are at $22 for GE now.  Perhaps the October 22 calls on a pullback will be the next trade.  Gold took off today as the US dollar continues to fall.  The precious metal gained $38 on the futures.  The XAU rose 8 7/8.  ABX up almost 2, GG gained 2 1/3 and NEM higher by almost 3 points.  Volume was very heavy, confirming the move higher.  I still think the gold shares are going higher but it's getting late in the game for this move.  Or not.  We could see a parabolic rise and that is what it is starting to feel like.  Obviously I sold the October ABX calls way too soon.  Mentally I'm feeling a bit tired.  Where do we go from here is the next question.  All the good news has been announced.  Sometimes a strong first half of September leads to a weaker second half.  If that happens it could set us up for the October calls.  We've got a presidential rally here in my opinion.  I think that the market is telling us to look for an Obama victory.  If so, we should stay strong into the beginning of November.  The fact that the financials have led this rally means that it's for real.  Gold is going strong and that trend should continue.  I will try and find another place to hop on board.  We'll finish off the trading week tomorrow.

The Dow gained 10 points today on average volume.  The advance/declines were almost 2 to 1 positive.  The market was lower but made a final hour comeback.  Waiting on the Fed.  The market breadth remains in an uptrend.  The McClellan oscillator continues to the upside.  I think that we will continue to see higher prices going into the September option expiration.  It looks to me like that is the set up at the moment.  Of course the Fed could move things the other way if the reaction to the announcement tomorrow is negative.  But even so, I feel it would be short lived.  I could be wrong.  GE was up almost 1/3 on average volume.  Overbought and staying there for GE.  Looks like I won't be able to buy the October calls here as a pullback hasn't materialized.  Gold was flat on the day as the US dollar dropped a bit more.  The XAU gained 2/3.  ABX up 1/4, GG rose 3/4 and NEM added 1/2.  Volume was good here.  The gold shares sold off early and came all the way back.  Still overbought here but trying to go higher.  I'm still interested in the October gold share calls if I get the chance to re-enter.  Mentally I'm feeling a bit tired, did not sleep well.  I'm guessing things will get a bit volatile with the Fed news tomorrow.  It could be a triple digit day either way.  I have a couple of trading ideas but I will let the news pass before attempting the next trade.  All eyes on the Fed tomorrow.  

Back to the upside in a Fed waiting game market as the Dow gained 69 points on average volume.  The advance/declines were 2 to 1 positive.  We get a ruling from Germany on the ECB bailout tomorrow and the Fed announcement on Thursday.  Those will be the near term drivers for the markets.  The trend is still up in my opinion.  The uptrend line that began in the beginning of June for the S&P 500 on a daily basis remains in place.  I may try the September OEX calls before next weeks expiration.  GE was up an 1/8 on light volume.  Again, I might go out to the October calls here on a pullback.  Gold was up a few bucks on the futures.  The US dollar had a bad day but gold did not rally as much vs. the movement in the dollar.  That isn't bullish for gold.  The XAU moved up 2/3.  ABX and GG had very slight fractional gains, while NEM was up 2/3.  Volume was light.  I'm waiting on the gold shares here for some type of short term correction.  I'll then probably try the October ABX calls again.  The Fed announcement should provide some movement here.  Still overbought on the gold shares.  Mentally I'm feeling OK.  The stock indexes are overbought and staying there.  This is a technical condition that could persist.  I am probably going to wait for the Fed and the market reaction before I make my next trade.  That goes for the gold shares as well.  Sometimes you have to be patient.  Not to mention that the risk level will be elevated due to the uncertainty.  Although most believe that QE3 is coming, it may already be discounted or not happen at all.  So I'll stay on the sidelines until the news is out and then go from there.  We'll see what happens in Germany tonight. 

We started the week off on a weak note as the Dow fell 52 points on light volume.  The advance/declines were negative.  Digesting the recent gains in my opinion as we wait for the Fed later in the week.  I might be looking at the September OEX calls for a short term trade here if we get oversold.  I do not think this is the beginning of anything big to the downside.  As usual, I could be wrong.  GE was off 1/8 and volume was light.  I am looking at the October calls here on a pullback.  I think I will wait on the Fed first though.  The gold futures were off $8 and a bit more in the aftermarket.  The US dollar only had a slight gain.  The XAU was lower by 2 7/8.  ABX, GG and NEM all had fractional losses on light volume.  I'm still looking at the October gold share calls again.  Once again the volume and open interest expanded on the ABX October 40 calls.  That could be the next trade.  Again, waiting on the Fed is my preferred way to go at the moment.  Mentally I'm feeling OK.  No real reason for todays decline and there wasn't much conviction in the move.  The trend for the stock indices remains up.  Gold is taking a slight breather but I do believe that there is more room to the upside there as well.  We've got some economic data out this week but all eyes will be on the Fed.  I'm guessing it will be a sell on the news event but we'll see.  I'll keep an eye on Europe tonight and go from there.

It was a sideways trading day with a bit of a pop at the close.  The Dow was higher by 14 points on better than average volume.  The advance/declines were 2 to 1 positive.  The employment numbers were weak but the market didn't care.  We're heading higher.  There is no overhead resistance.  We should at least run up into the September option expiration.  Declines can be bought.  If we get to short term oversold, I might try the OEX calls.  However people will be buying nay dip because they have missed the move, so getting oversold would be difficult.  GE was up 1/4 on lighter volume.  It is the same story here, we've broken out above resistance.  Calls are the trade here.  I'll check the option premiums over the weekend.  Gold had a stellar day as the US dollar broke a longer term uptrend line that was a year in duration.  The gold futures were higher by $34.  The XAU gained 5 1/2.  ABX up 1 1/8, GG rose 7/8 and NEM added 3/4.  Volume was good.  I'll be looking to buy the October gold share calls again if we see some pullback.  Overbought and staying there.  All signs point to higher prices for gold as well.  Mentally I'm feeling a bit tired and of course discouraged for selling the October ABX calls yesterday.  But you have to keep moving on in the game.  The stock indices have broken out to the upside and we'll have to see how far they can run.  We might get a pullback to the breakout point but we also might not.  I'll be looking for long entries over the weekend.  We've got the Fed next week and that will be the catalyst for the next move in the markets.  There was heavy volume in the ABX October 40 calls yesterday and today.  That was a precursor for higher gold share prices when it happened with the October ABX 34 calls in August.  It appears to be the case again.  I'll try to come up with a game plan over the weekend to get some gold share calls again.  For now it is Friday afternoon and time for a break.

We got the resolution to the direction of the market today as the Dow climbed 244 points on good volume.  The advance/declines were 4 to 1 positive.  The ECB spoke and the markets liked what they heard.  It doesn't really matter if it works or not.  The market has spoken and we should listen.  We broke through the 1420 level on the S&P 500.  There is nothing in the way of higher prices.  We will get the employment report tomorrow but even if we drop, I think that any decline can be bought.  The McClellan oscillator will be moving back to the upside after todays action.  GE was up almost 2/3 on good volume.  The 50 day moving average held once again.  I may try the calls here despite the good move up today.  The weekly chart for GE is looking constructive.  Gold rallied as well.  The futures were up over $10.  I would have liked to see a better move in gold today.  The US dollar was slightly lower.  The XAU rose over 4 points and is at the 200 day moving average on the daily charts.  ABX was up 7/8, while GG and NEM gained 1 1/4.  Volume was good.  I sold my October ABX calls.  The profit was 160%.  I could be early to exit here.  I noticed that the volume expanded at the close on these options.  The last time that happened with the ABX October 34 calls, we saw higher prices in the near term.  We also closed on the high of the day for ABX and that is usually bullish.  Mentally I'm feeling OK.  The markets powered higher today.  Shorts were squeezed.  The Dow transports haven't confirmed the move higher but could in time.  Gold though overbought is still a buy in my opinion.  The gold shares outperformed gold itself today and that is a positive going forward.  I will try and buy back some gold share calls cheaper in the days ahead.  I am going to stick to the October series for now.  We've got the employment number tomorrow and that should be a mover as well.  Stay tuned. 

A waiting game as the Dow rose 11 points on average volume.  The advance/declines were slightly negative.  Today the overall market was weaker than the Dow.  Nothing to do but wait for the ECB tomorrow.  I still think that we will take another shot at 1420 on the S&P 500 in the near future.  As always, I could be wrong and often am.  GE was up 1/8 on lighter volume.  Still holding at the 50 day moving average on the daily charts.  Gold was little changed today as the US dollar didn't do much either.  The XAU was off 1/4.  ABX, GG and NEM all had fractional moves one way or the other on light volume.  The same wait and see attitude going on here as well.  Mentally I'm feeling tired, did not sleep well.  If we don't get moving tomorrow on the ECB, we should get going off of the employment numbers on Friday.  That's the idea for now.  My ABX October calls are still in the black and the price isn't moving much.  We'll see what happens tomorrow and go from there.

Welcome back everybody is what the markets would like to say as the summer has now passed on by.  It was a mixed market as the Dow fell about 55 points on light volume.  The advance/declines were positive.  The overall market was stronger than the Dow.  We were lower during the day but made some what of a comeback.  There will be an ECB announcement on Thursday and we've got the employment number on Friday.  The technicals on the stock indices are oversold here short term so I'm still in the bullish camp.  GE was lower by over an 1/8.  Volume here looks to be average and the recent uptrend line has been violated.  We are at the 50 day moving average on the daily charts and we'll see if that holds.  Gold gained $8 on the futures, which was a carryover from Friday.  The US dollar was a bit higher today.  The XAU was flat.  ABX and GG had fractional losses.  NEM led the way lower by 7/8.  NEM leading the way down isn't usually bullish for the gold shares going forward.  Volume was light.  My October ABX calls are still in the black.  The gold shares are overbought here short term.  My guess is that near term gold will do the opposite of what the US dollar does.  The US dollar is right at a longer term weekly uptrend line that has been in effect for a year.  Things will get interesting for this ABX trade.  Mentally I'm feeling a bit tired, did not sleep well.  The stock indexes are waiting for the next bit of news and we'll have to see what the reaction is.  I'm going to remain bullish for now but of course, anything can happen.  The ABX October call trade is still showing a profit.  Gold has had a nice near term run here and I would expect it to take a rest.  The timing of that is the question.  Plenty of time on the ABX trade but that doesn't mean it will remain profitable.  Always plenty of questions in this game.  We'll keep an eye on things overnight and see what develops tomorrow.

Big Ben spoke and the markets reacted as the Dow rose 90 points on better volume but still light.  The advance/declines were better than 2 to 1 positive.  It wasn't exactly a broad based rally in my opinion but we'll take it.  The question is what happens when the Fed meets next month?  If they don't do anything, how will the markets react?  If they do something, then what is left to do?  Plenty of questions as usual in this game.  The technicals still remain oversold on the stock indices so there is plenty of room to move higher in my opinion.  But anything can happen.  We still need to get through 1420 with good volume on the S&P 500 to start the next leg up.  That's a guess as usual.  GE was up a touch and the volume was light.  I actually had a brief thought of getting some September calls here today but did not.  I'll reconsider this idea over the weekend.  Gold had a good day after Bernankes speech as the US dollar fell.  The precious metal futures rose $30 and a bit more in the aftermarket.  The XAU gained 7 points.  ABX up 1 3/8, GG rose 1 5/8 and NEM led the way higher by 2 1/8.  Volume was good for a holiday Friday to confirm the move up.  We are right back to the 170 level on the XAU that has contained the gold shares up until now.  It looks like we could break through next week if the momentum higher continues.  ABX closed above the $38 level for the week.  We'll see if it can build on that with some volume.  My October ABX calls gained some ground today.  Mentally I'm feeling OK.  All the players should be back next week so I'd expect things to start to pick up for the markets.  I'm still a believer in higher prices going forward for the stock indexes.  However the market as usual will go where it wants.  I might add a trade in GE next week for September.  I'll try and figure that out this weekend.  Gold has broken out to the upside in my opinion but the next question is how far will it go?  I'll have to check the resistance levels over the weekend.  You don't want to leave a lot of profit on the table but you don't want to get greedy either.  It's never easy in the game.  Plenty to ponder and an extra day this weekend to think on things.  For now it's a Friday afternoon in the late summer.  Time for a rest. 

A bit of movement finally before the Bernanke blabbering tomorrow as the Dow fell 106 points on the usual light volume.  The advance/declines were 2 to 1 negative.  No apparent reason for todays decline but I still think we are digesting the gains before tackling the 1420 level on the S&P 500 again.  But I could be wrong and often am.  Getting oversold on the stock index technicals.  We'll get past Labor Day and see what happens after that.  GE fell 1/8 and the volume was extremely light again.  Nothing new to report there.  The gold futures were down another $5 as the US dollar showed a slight gain.  The XAU fell 1 2/3.  ABX, GG and NEM all moved very little on light volume.  My ABX October calls remain in the black but aren't doing much.  I suppose the gold shares will move tomorrow on what they hear or don't hear from Bernanke.  Waiting on the end of the Labor Day weekend here as well.  Mentally I'm a bit tired, could have slept better.  I still think that the stock indices will hold up here but anything can happen I guess.  I also believe the gold shares are simply digesting their recent gains before they move higher above resistance.  That would be through the 170 level on the XAU and the $38 level on ABX.  We'll see.   

Nothing new to report today as the song remains the same.  The Dow gained 4 points on light volume.  The advance/declines were positive.  Economic data came and went.  We still fell in the final hour and that remains a near term problem for the bullish cause.  Still in a holding pattern until next week in my opinion.  GE was flat and the volume was extremely light.  The final week of summer has really taken hold.  The market players on on hiatus.  Gold fell today, off $6 on the futures and more in the aftermarket.  The US dollar was higher today.  The XAU dropped 1 3/4.  ABX, GG and NEM all had fractional losses on light volume.  Just a waiting game here as well.  I'm still a believer that we are consolidating the recent gains for the moment and then will break through the resistance.  But that's a guess as usual.  Still overbought on the gold shares.  Mentally I'm feeling OK.  The stock indexes are headed nowhere for now.  There is no apparent catalyst for stocks this week.  Perhaps Bernanke on Friday can get things going.  However the volume will be light regardless.  Simply hold on until Labor Day and then we'll get things moving one way or the other.  I'm still holding the October ABX calls and they're still in the black for now.  If and when we get through the $38 level with good volume on ABX, these calls should show some decent gains.  Hasn't happened yet.  2 days left before a long holiday weekend.  Patience is needed and advised.     

Just marking time here as we meander through the last week of the summer.  Doldrums to the max as the Dow fell 21 points on very light volume again.  The advance/declines were positive.  We dropped in the final hour again and that isn't bullish.  Seems like we're just waiting for Bernanke on Friday and when that's done we'll wait for the employment report the following Friday.  The players are still on vacation.  We'll have to be patient here.  GE was flat and the volume extremely light.  Nothing new to report here.  Gold fell a bit over $5 today on the futures despite a weaker US dollar.  That isn't bullish for the gold cause.  The XAU was off a touch.  Trying to get through the 170 level on the XAU to signal the next leg up.  ABX, GG and NEM had fractional moves one way or the other and of course the volume is very light.  My October ABX calls are still in the black.  We still need to get through the $38 level on good volume here to break through the resistance.  The gold shares remain overbought.  Mentally I'm feeling a bit tired, did not sleep well.  The economic data today was a non-event.  The environment remains one of no volume and lack of conviction.  I believe that will change in a week.  Until then it is simply a wait and see game.  I think gold is simply taking a rest here before we move higher but that is a guess as usual.  We'll try and remain patient for now.  More economic data out tomorrow and we'll keep an eye on Europe as well.

A mixed, mundane Monday as the Dow fell 33 points on very light volume.  The advance/declines were negative.  The Dow led the way down as other stock indices were not as negative.  We did continuously lose ground in the final hour and that is not a positive.  In a holding pattern here as far as I'm concerned as we wait for everyone to return next week.  Plenty of economic data out this week but we'll have to see if it means anything to the market.  GE was up a touch on the same very light volume.  Nothing new to report here.  Gold was up a couple bucks on the futures but fell in the aftermarket.  The US dollar was flat today.  The XAU dropped 2 1/8.  ABX, GG and NEM all had fractional losses on light volume.  My ABX October calls are still in the black but losing ground on a daily basis.  The volume is light here and that is what you'd like to see on a decline.  However we haven't been able to break through the $38 level of resistance, which is also at the weekly downtrend line from February.  Plenty of time left on these options but selling them last week and then buying them back looks like the proper strategy that I did not follow.  The gold shares remain overbought.  We'll see what happens going forward.  Mentally I'm feeling OK.  The stock indexes are in a wait and see mode here as the 1420 level on the S&P 500 remains key in my opinion.  If we can get through there with some volume it would be bullish.  Gold is due to take a rest.  As long as it doesn't turn into a protracted decline I think the bullish cause will remain positive.  That's a guess as usual.  Nothing out of Europe lately and we've still got Bernanke on Friday to deal with.     

Back to the upside today as the Dow gained 100 points on light volume.  The advance/declines were positive.  You had to figure some kind of bounce would arrive.  We are still in a summer drift, grind our way higher mode.  The volume has been very light and I don't think you can really trust things one way or the other here.  I'll repeat that I don't think this is the start of a big decline.  We really have to wait until after Labor Day to figure out where we are going in my opinion.  But I could be wrong and often am.  GE was up 1/8 on light volume.  We are right at the daily uptrend line.  If you like the calls here, today was probably the day to take a chance and pick them up.  No trades for me here at the moment.  Gold was flat on the futures today which wasn't bad considering we had a bit of strength in the US dollar.  The XAU was flat as well.  ABX, GG and NEM had fractional moves one way or the other on light volume.  My ABX October calls are still in the black but lost some ground today.  The gold shares are overbought here and I'm not sure how much longer I'll hold onto these calls.  I'm still thinking that I can sell them and then buy them back cheaper later on.  But that's a guess.  Mentally I'm feeling OK.  The stock indices turned around today and we'll have to see if they can keep it up next week.  A fair amount of economic data will be out.  We've also got Bernanke flapping his gums on Friday.  However it's still considered the summer and trading should remain thin.  Gold had a nice week but we're overbought here and maybe need to take a rest.  We could simply go straight up but I doubt it.  I'll have to go over the charts this weekend and decide from there.  The trading is never easy.  We'll see what happens next week.  It's Friday afternoon and time for a break.

Continuing lower as the Dow fell 115 points on light volume.  The advance/declines were 2 to 1 negative.  The summation index is now pointing lower.  I still don't think this is the start of something big to the downside.  However the technicals have rolled over for the stock indexes.  It is still summertime vacation mode though.  We'll be short term oversold in a day or so.  We should drift back up after that.  That's my guess at the moment.  GE was off 1/8 on light volume and we have come back to the uptrend line that began in June.  This could be the place to get some GE calls.  I don't think I'm going to attempt a trade here though because I'm already involved with the ABX trade.  Gold continued to rally today as the futures were up over $30, adding to yesterdays aftermarket gains.  The US dollar was just a bit lower today.  The XAU only rose 1/3 and that is troubling going forward for the bulls.  ABX had a fractional gain, while GG and NEM each lost 1/4.  Volume was good here and there is interest once again in the gold shares.  My October ABX calls are still in the black.  We are just about at the resistance for ABX on the daily and weekly charts.  The volume has been good lately.  I think that we will break through to the upside but when is the question.  Very overbought here short term but I'm now thinking about simply holding the calls because there is a lot of time left on them and I think ABX will breakout to the upside.  I could be wrong.  Gold itself has broken out to the upside and the trend has changed from sideways to up.  Mentally I'm feeling OK.  Who knows?  Maybe I'm wrong about the stock indices here and we are in the beginning of a decent decline.  The weekly charts of the indexes look like they may be putting in tops.  I'm still sticking with the bullish scenario for now.  Gold has had a nice breakout and the volume is confirming it.  Any pullbacks can be bought in my opinion.  Overbought short term for now though.  Haven't heard anything out of Europe for a while but that could change at any moment.  End of the week tomorrow. 

A mixed market today as the Dow fell 30 points on light volume.  The advance/declines were negative.  The overall market was stronger than the Dow.  Simply working off the overbought condition before moving higher is my guess at the moment.  The market was lower but made a comeback after the Fed minutes release that implied more easy money coming soon.  Not sure if that will happen or not.  Whatever the case it's still a light volume summer market mood.  We need to get through 1420 on the S&P 500 to start another leg up.  GE still a bit lower today and still light volume.  Nothing new to report there.  Gold rallied after the Fed minutes and the futures actually closed a couple of bucks lower but rose $15 in the aftermarket.  The US dollar fell again on the prospect of another easing.  The XAU was up 3 2/3.  ABX up 3/4, GG and NEM rose a buck.  Volume was OK again.  My ABX October calls are now solidly in the black.  The gold shares are very overbought here and I am still considering dumping the ABX calls before the end of the week.  However the longer term gold share charts still look very constructive for more gains.  Mentally I'm feeling OK.  I'm guessing the remaining 2 days of the week will be a slow drift to nowhere.  Things should get somewhat back to normal after Labor Day.  The stock indexes remain overbought even with a couple of days decline but that doesn't mean that they can't move higher.  Gold has broken out to the upside as the US dollar has fell in the past couple of days.  Not sure how long that will last as the dollar has trend line support at the 81 level.  Volume has been good for gold here though and that is bullish going forward.  One thing for sure about trading, it's never easy.  ABX has resistance at $38 and we are just about there.  If we get through $38 there will be more gains to come.  We'll keep an eye on the markets overnight and take it from there.    

Movement to the downside today as the Dow fell 68 points on light volume.  The advance/declines were negative.  The overall market was weak but not as much as the Dow.  I do not think this is the beginning of some long, protracted decline.  The stock indices are overbought and need to take a rest.  I don't see any huge rally in the offing either.  Of course I could be wrong on both counts.  It wouldn't be the first time.  I still think that nothing of great consequence will happen until all the traders return to the game after Labor Day.  GE was off a bit again on light volume.  Still in a sideways holding pattern with regards to GE.  We still need to see a break through $21 on good volume to resume the uptrend there.  Gold had a good day on a weaker US dollar.  The precious metal futures rose almost $20.  The XAU gained 4 1/3 but was higher.  ABX, GG and NEM all had fractional gains on better volume.  These issues were higher as well but fell back during the day.  My ABX October calls are now in the black.  I am seriously considering selling them this week but the weekly charts on the gold shares still have plenty of room to run.  However I think that selling them soon and trying to buy them back cheaper may be the best move for now.  We'll see.  Mentally I'm feeling OK.  A pullback in the stock indexes today and we've been waiting a while for that to happen.  My technical work suggests that it won't last long or be too deep.  It's still a slow summer trading environment.  Gold broke above the resistance at $1625 and we will have to see how far it runs.  The favorable seasonality factor of August and September is on golds side.  However volume has been light.  We'll have to see if there is any follow through tomorrow. 

We sold off early and spent the rest of the day coming back as the Dow fell 3 points on light volume.  The advance/declines were negative.  The summer doldrums remain in place with no end in sight.  Not a lot of economic data out this week as well.  So we will see if the drift higher continues as we are at the resistance of 1420 for the S&P 500.  Otherwise it's just another Monday in the summer.  GE lost a touch on light volume.  Nothing new here as well, trying to see if a breakout above $21 occurs.  Gold was up 3 bucks or so on the futures as the US dollar dropped a tad.  Not much going on here either.  The XAU was up a point.  ABX and NEM had fractional gains, while GG lost a fraction.  Volume was light.  My October ABX are slightly in the black.  I'm still considering dumping them this week but I would like to see ABX get to $38 first.  May or may not happen.  Overbought on the gold shares to be sure as well as the stock indices.  Mentally I'm feeling OK.  Not much else to add today.  It is a summer snooze fest for the most part.  Nothing coming out of Europe and most of the players remain on vacation.  There is nothing wrong with remaining on the sidelines until Labor Day.  We'll see what transpires tomorrow but it will probably be more of the same.

The beat goes on as the Dow rose another 25 points on light volume today.  The advance/declines were positive.  Extremely overbought now but that doesn't mean that we can't go higher.  What it does mean is that we are probably getting close to a point where the stock indexes will want to take a rest.  The summation index continues to the upside though.  I still feel that the best course of action would be inaction for now.  There's also an extra week on the September option cycle so the option premiums will be pricey.  Patience is recommended.  GE was off a bit on light volume.  We've been basically moving sideways here for a month.  The technicals for GE remain overbought.  Perhaps the calls will be in order when we get oversold.  Gold was little changed on the day as the US dollar was higher.  The XAU fell 2/3.  ABX, GG and NEM had fractional moves one way or the other on light volume.  The technicals here are overbought and look like they are about to roll over.  My ABX October calls are at break even.  I am going to have to seriously consider getting rid of them next week in hopes of buying them back cheaper later on.  The weekly charts still look good here but the dailies are overbought.  It's something to ponder over the weekend.  Mentally I'm a bit tired.  It's been a nice summer rally for the stock indices.  However nothing lasts forever and the volume hasn't been anything to write home about.  I am also hearing analysts on TV that are all bullish and they are rarely correct.  The CBOE call/put ratio is also the highest that it's been in quite some time.  So I would not be thinking that we are just going to continue moving higher.  But I could be wrong and often am.  I still like the gold shares going forward but they may need to take a rest as well.  Speaking of taking a rest, it's Friday on a hot summer afternoon and time for a break. 

Some movement to the upside today as the Dow gained 85 points on light volume.  The advance/declines were over 2 to 1 positive.  The summation index continues higher.  Very overbought both short and medium term for the stock indices.  That doesn't mean that we can't go higher but some pullback should occur soon.  No reason for todays move but we can use expiration week and a falling US dollar as excuses.  The summer rally continues but the volume has been light and we never trust light volume rallies.  GE was up a bit again on light volume.  Stalling at the 21 dollar level here.  If we get through 21 we should move higher since it is the resistance on the weekly chart.  Hasn't happened yet.  Gold was higher by $12 on the futures with a weaker US dollar.  The XAU rose 5 points.  The continuing relative strength of the gold shares vs. gold itself remains a positive going forward.  ABX gained 1 1/3, GG up by 1 3/4 and NEM rose a buck.  Volume continues to be underwhelming here.  My October ABX calls have moved into the black.  ABX is pretty overbought at the moment.  I'm thinking of dumping the calls and trying to buy them back but I'll continue to hold them for now.  Mentally I'm feeling a bit tired, could have slept better.  We're almost to the resistance of 1420 on the S&P 500.  The market has the feel as though we are going to break through that level.  Might need to back and fill first.  There hasn't been any negative headlines out of Europe for a while but that could happen at any time.  We'll get through expiration tomorrow and go from there.  The gold shares are acting better but gold itself is still in a sideways channel.  If we can get gold to break out of the channel to the upside then the gold shares will continue higher in my opinion.  That is probably just stating the obvious.  We'll see about the option expiration and go from there.

More of the same drift today as the Dow fell 7 points on light volume.  The advance/declines were positive.  The overall market was stronger than the Dow.  There is nothing new to report really.  It is a summer doldrums environment.  The stock index technicals are overbought and staying there.  Expiration week, no volatility and a lack of participants.  The recent McClellan oscillator signal for a decent move did not pan out.  So on we go and there are no changes for the foreseeable future.  GE was little changed, the volume was light and this sounds like a broken record.  Gold was up $4 on the futures and the US dollar was a bit higher as well.  The XAU was up 2/3.  ABX and NEM had fractional upsides moves, while GG dropped a tad.  Volume was light.  My ABX October calls remain in the red.  Nothing new to report here as well.  Mentally I'm feeling OK.  There is no need to press any issue right now.  When the stock indices are quiet and simply drift there is no need to force things.  The trading arena will pick up down the road.  This is the reality of the market that we find ourselves in today.  Patience is necessary and mandatory.  We'll see what tomorrow brings but the odds are it will be more of the same. 

Another day another case of the doldrums.  We are really in a low volume malaise here as the Dow gained just 2 points.  The advance/declines were negative.  Not even a decent retail sales report could get things going today.  So this is the trading environment that we are faced with.  It could continue for the rest of August.  As I have said before, the sidelines are not a bad place to be for now.  Volatility tried to spike today but it wasn't much.  3 days left in the August option cycle.  GE was off a touch and the volume was light.  Nothing new to report here.  Gold fell again, down another $10 on the futures.  The US dollar was up just a tad.  The XAU fell a point.  ABX, GG and NEM all had fractional losses on light volume.  I still like the way the gold shares have held up here despite the recent sell-off in gold.  That should be bullish going forward.  Mentally I'm doing OK.  No need to force the issue here with regards to trading.  There aren't that many players out there.  Sometimes it is better to simply remain patient.  I believe that we are in one of those times now.  However the work still needs to be done on a daily basis and I will continue doing that of course.  The trading should get back to normal after Labor Day.   

Kind of a mixed bag today as the Dow fell 38 points on very light volume.  The advance/declines were negative.  We sold off hard early and came back for most of the day.  It is expiration week so the positive bias should assert itself at some point.  Plenty of economic data out this week as well.  Volume has been pretty tepid in August so I would not get too wrapped up in whatever transpires this week.  GE was off 1/8 on the same pretty light volume.  We're getting no forward signals from this issue lately.  Chalk it up to the summer doldrums I guess.  Gold fell $10 on the futures today despite weakness in the US dollar.  The XAU dropped 2 1/3.  ABX, GG and NEM all had fractional losses on light volume.  My October ABX calls are still in the red.  The gold shares are short term overbought here so some type of pullback or weakness is to be expected.  Gold itself needs a breakout above $1625 to get things going to the upside.  Mentally I'm feeling better but not 100% yet.  It feels like we are simply marking time here with the stock indexes.  Very light volume with a slight upwards bias is the story for now.  Gold remains in the same trading range since early May.  There is nothing to do but wait for a breakout one way or the other.  It is not a bad time to be on the sidelines.  Haven't had a headline out of Europe in a while.  We'll see how long that can continue. 

We opened lower and closed higher but it was an extremely light volume levitation as the Dow gained 42 points.  The advance/declines were slightly positive.  It was a Friday session in the summer.  I don't think you can really read much into it.  The McClellan oscillator is telegraphing a decent move in the next day or two.  Not sure which way it will be.  Short term overbought and staying there.  Expiration week coming up.  GE moved very little and the volume was very little.  No trades in mind there at the moment.  Gold gained a couple bucks on the futures as the US dollar dropped just a touch.  The XAU was up 7/8.  ABX, GG and NEM all had fractional gains on light volume.  The weekly candlestick charts show some promise for these issues but the volume is lacking.  I continue to hold on to my October ABX calls and they continue to wallow in the red.  Mentally I'm still ill and hope to rest over the weekend and be back at full strength.  It was a summer doldrums week and I expect more of the same going forward.  The September option premiums will be high because there is an extra week on them.  I doubt that I will have any new trades before Labor day.  Friday afternoon and time for a break.

A mixed bag today as the Dow was lower by 10 points while the S&P 500 and the NASDAQ were higher.  The advance/declines were positive and the volume anemic.  It is a summer doldrums week.  Perhaps more of the same coming for the rest of August.  If you want to take a break, now is the time.  We may see some movement in expiration week but that's a guess as usual.  I'm on the sidelines with regards to the OEX.  GE gained a nickel and we're still overbought here.  No trades for me here either.  Gold was up $4 on the futures despite a rise in the US dollar.  That's encouraging for the gold bulls.  The XAU gained 1 7/8.  ABX, GG and NEM all had fractional gains on extremely light volume.  Overbought on the short term technically for the gold shares.  My ABX calls remain in the red.  Mentally I'm still feeling ill and am exhausted.  I need to get some rest.  Tomorrow should be a slow wrap up of a slightly positive week for the stock indices.

Summer days lead to summer daze as we drift around aimlessly.  The Dow managed 7 points to the upside today on very light volume.  The advance/declines were slightly positive.  It seems as though we are losing steam here but I could be wrong.  Not much to report and the rest of the week should be the same.  GE lost 1/8 on light volume.  The technicals remain overbought here.  Gold was up 3 bucks on the futures as the US dollar was practically flat on the day.  Slow here as well.  The XAU was off 2/3 and opened higher but closed lower.  That's a one day reversal to the downside.  ABX and GG were lower by 1/4, while NEM was up 1/4.  Volume was light.  My October ABX calls almost made it back to break even today but then faded.  They are still in the red.  I did notice yesterday that the volume for the October ABX 34 calls was extremely heavy.  This came out of nowhere.  Today the open interest in this option expanded dramatically.  Somebody is making a huge bet here.  Mentally I'm still not feeling well with the flu or something.  Luckily for me the market is slow at the moment.  Nothing else to report today.

More drift higher as the Dow gained 51 points on light volume.  The advance/declines were almost 2 to 1 positive.  Overbought and staying there, which is a condition that could persist.  The trend remains sluggishly up.  Probably too late for some August OEX calls but we'll see.  As I said yesterday probably the most prudent course of action is waiting things out.  GE was up 1/8 on light volume.  Same technical condition as the overall market for GE.  Overbought and staying there.  Gold lost a touch today as the US dollar was a bit lower as well.  The XAU rose 2 points.  ABX, GG and NEM all had fractional gains of at least 1/2 on light volume.  The gold shares continue to outperform at the moment.  My October ABX calls are still in the red.  Mentally I'm still not feeling 100%.  Slow summer trading is what we are seeing for now.  I expect that to continue for the rest of the week.  The summation index is trending higher.  The weekly charts for the gold shares look positive but they have looked good before too.  Gold itself has been moving sideways for 4 months.  We are in golds historic best months of August and September.  I don't expect much out of this week but we'll keep an eye out going forward.       

A slow start to the week for the most part as the Dow gained 21 points on very light volume.  The advance/declines were positive.  We were up about 90 points but sold off in the last half hour.  The technicals are overbought on the stock indexes and a pullback is in order.  Not a lot of economic data out this week and I expect this week to be a summer doldrums affair.  I could be wrong.  GE was flat on the day after hitting a new high for the year.  Volume was light.  No trades for me here.  Gold was up $6 on the futures as the US dollar was a touch weaker.  The XAU gained 3 3/4.  This is the second time in the past week that the gold shares have out performed the metal itself.  That is bullish for the gold shares going forward if it keeps up.  ABX and GG had fractional gains while NEM was up 1 1/2.  Volume was light.  My October ABX calls are still in the red.  Mentally I'm a bit tired, not feeling 100%.  I expect a drift lower here for the stock indices and then perhaps some strength towards the end of the week.  9 days to go for the August option cycle.  Many players are on vacation.  I don't anticipate any trades for me in the August option cycle.  That would most likely be the prudent course of action.  There's always the possibility of a headline from Europe though. 

Back to the upside today as the Dow gained 217 points on light volume.  The advance/declines were about 5 to 1 positive.  The employment numbers were better than expected and today what Europe said yesterday was viewed as positive.  What?  Yesterday Europe was viewed as negative.  This is the kind of game we play.  That is why we stick to the technicals and they have rolled back up for the stock indexes.  It is a dicey affair at the moment.  We're basically moving in channel with a slight upward bias.  The volume today was light and we never trust light volume rallies.  But it is a Friday in the summer.  So the questions continue and the trading is never easy anyway.  Not a lot of data out next week so it could be slow.  However we are still at the ongoing risk of a headline.  GE was up 3/8 and the volume was light.  I've decided not to attempt a trade here for now.  2 weeks to go before option expiration.  Gold rallied a bit as the US dollar got crushed, which didn't make any sense considering the jobs number was better than expected.  The gold futures rose $18.  The XAU was up 2 1/2 but was higher before the last 15 minutes of the session when the gold shares abruptly sold off.  ABX and GG rose around 1/2, while NEM was up a buck.  Volume was nothing special.  My ABX calls remain in the red.  I still plan on holding them for a while.  Gold has been in a sideways channel as well since the middle of April.  Still waiting for a breakout one way or the other.  Mentally I'm feeling OK.  Looks like we should continue to drift higher here.  I may try the August OEX calls on weakness next week but I may be too late.  With all the data out this week when it was all said and done the Dow gained 20 points.  That is a lot of trouble for nothing.  Perhaps on the sidelines is the place to be until all the players return after Labor Day.  I'll check the charts over the weekend and go from there.  It's a Friday afternoon in the summer.  Time to take a break.

The ECB followed the Fed with not much to say and the Dow moved lower.  The major average fell 92 points on average volume.  The advance/declines were negative.  We were down twice as much during the session.  I have expected higher equity prices and we have done nothing but move lower.  However the decline has not been as bad as it could be.  Considering the lack of Central Bank follow through to their previous statements, we should be down much further.  But that is simply my opinion.  The daily technicals have rolled over for the stock indexes and the summation index is now trending lower.  That could all change on tomorrows employment report or the averages will confirm the downside by moving lower.  Or the number could be a non-event since it will be a Friday in the summer.  We'll soon know the answer.  GE was off 1/4 on average volume.  GE had a pretty wide range for the day, I'm guessing due to the uncertainty going forward with the employment report.  No trades there for now.  Gold dropped again, off $16 on the futures.  The US dollar rose again today.  The XAU held up OK, considering the dollar and the overall slump in the indices.  ABX, GG and NEM all had fractional losses but NEM led the way down and that isn't bullish.  My October ABX calls are still in the red.  The gold shares have held up better than lately in the recent gold decline.  We'll see what that means going forward.  Mentally I'm feeling tired, did not sleep well.  All eyes will be on the employment numbers tomorrow.  I have no idea what they will be.  We will have to see how the market reacts and take it from there.  Even with the recent decline I'm still in the bullish camp for now.  We'll see what happens tomorrow.

The Fed has come and is gone once again.  Nothing new was said and that wasn't unexpected.  The markets sold off, came back and sold off once again.  The Dow fell 32 points on good volume.  The advance/declines were negative.  Now that's out of the way and we'll see what comes from the ECB.  Still more overbought than oversold on the stock index technicals.  The summation index is trending sideways.  I'm still a believer that we are in an uptrend but it's a slow moving affair.  GE was flat on the day and the volume was light.  No trades there for me at the moment.  If anything, I may try the August calls.  Gold fell today as the US dollar moved higher.  The precious metal futures were off $7 and a bit more in the aftermarket.  The XAU lost 1 3/4.  ABX, GG and NEM all had fractional losses and the volume was good.  The gold shares sold off hard early in the session and then made a comeback.  Not exactly sure of what to make of things here but at least it wasn't a total sell off.  My ABX October calls are still in the red.  Mentally I'm feeling OK.  The small stocks had a worse day than the big caps and that usually isn't a positive going forward.  The transports had a rough day as well and they often times lead the way.  Perhaps we are simply in a waiting game until the employment report on Friday.  Gold sold off today but it wasn't as bad as it could have been.  The gold share technicals are breaking down from overbought.  August and September are historically the best months for the price of gold.  We'll see.  All eyes and ears will be on the ECB tomorrow.  It should be some type of market mover.