The rally lives on post-election as the Dow gained 367 points on heavy volume. The advance/declines were positive. The summation index is trying to turn back up. We did fall back from the days high as the Dow at one point was up 800. No clear winner in the election just yet but it appears that Joe Biden will prove victorious. Combine that with a republican senate and gridlock will be the norm. The market loves that as the status quo will remain. The NASDAQ led the way higher and that's a plus for the bulls. The short term indicators for the major indices still have room to move higher. Perhaps the Fed announcement tomorrow will provide the impetus for another day up. We'll see. Most of the major stock index charts look like they want to go higher but the market as always will go where it wants. I'm looking for more gains in the coming days and weeks. GE was flat on the day and the volume was good. Gold dropped around $8 but was down more overnight. The US dollar had a huge election rally in the overnight session but finished the day with a small loss. The XAU fell four points, while GDX shed 7/8. Volume was average. My GDX November calls are back to being solid losers. I'll look to see how they end the week after the Fed and the jobs report. The short term indicators have stalled here and may turn back down. I suppose if I get any chance to end this trade without a loss I'll take it. That may just be wishful thinking at this point though. I did cancel the open order for more GDX calls at a lower strike price. Might revisit this idea later. Mentally I'm feeling a bit tired, did not sleep well. The VIX had a huge drop and bounced off its 50 day moving average. Not yet oversold on the indicators here. The election is basically over and the market has spoken. Could we hit new all time highs before the end of the year? Perhaps but we still have the pandemic virus to deal with and there doesn't seem to be any cure coming in the near term. Some foreign countries are returning to lockdowns and that will put a damper on whatever growth that there was. We'll watch and wait for now when it comes to the coronavirus. Most markets around the world continued to climb higher. We'll keep an eye on the overnight headlines and see what the Fed has to say tomorrow.

The pre-election rally continued as the Dow gained 555 points on good volume. The advance/declines were better than 4 to 1 positive. The summation index is now trying to turn back up. It appears that the market doesn't really care who wins tonight as long as it is over. The short term technical indicators for the S&P 500 have turned up. The next stop looks like the 50 day moving average at 3400. The Dow has now gained almost a thousand points in the two days before the election results. Certainly it doesn't appear to be worried about the outcome. Support has held and unless we see a complete turnaround tomorrow, which I doubt, the market is heading higher. GE was up 1/3 on good volume. Gold futures added another $15 as the US dollar was lower. The XAU gained 2 3/4, while GDX rose 3/4. Volume was lighter than it's been. My GDX November calls are now showing a small profit. I still have the other open order out there for the GDX calls at a lower strike price but will probably cancel it tonight. GDX has now moved too far for this order to get filled. At least the idea here was right but the timing was off. Water under the bridge as they say, I've got to just move on from here. I think that the gold shares still have room to go higher. Mentally I'm feeling OK. The VIX continues lower and has plenty of room to move down. That should match up with higher stock prices going forward. I suppose we'll watch the election results tonight and see what happens tomorrow. But I'm pretty sure that we've just begun a sustained rally regardless. Of course I've been sure about a few things lately that didn't come to pass. We've got the Fed and the jobs report to get through as the week moves on. Markets around the globe rallied pretty strongly as well overnight. Money is moving into stocks. We'll see how it goes post election tomorrow.

We start off this important week with a gain as the Dow climbed 423 points on good volume. The advance/declines were shy of 3 to 1 positive. The summation index is still moving down. This week holds plenty of variables. We've got the US election tomorrow, followed by the Fed announcement on Thursday and the employment report on Friday. So there will be a lot for the market to digest. Today the Dow was leading things higher with the NASDAQ a laggard. The bulls would like to see that the other way around. On the plus side, support for the S&P 500 has held for now. The short term technical indicators here have started to turn up but they remain oversold. So we are either going to start to rally from here or this is a pause before we head lower. Now I've already thought that we'd be moving higher during the decline of the past few weeks. So I'll just have to wait to see what the market tells us going forward. GE was up a dime and the volume was good. Gold continued moving higher as the futures gained $15. The US dollar finished little changed. The XAU was up 4 1/3, while GDX added 1 1/8. Volume was average. All aboard? It appears that the train has left the station for the gold shares. GDX has risen over 2 1/2 points in three days. Unfortunately for me the order that I placed for the GDX November calls at a lower strike price never got filled. I'm leaving it out there in case we get some kind of sharp drop. The short term indicators for GDX have turned up and I believe that higher is the way we're going to go. Resistance comes in at the 41 level. The GDX November calls that I do own are still losers but the loss is much smaller than it was. If GDX continues to rally from here they may even eventually show a profit. Plenty of time left in the November option cycle but the entry timing of this trade was too early. Mentally I'm feeling OK. The VIX was lower today and that fits a rising market. Still overbought here and the short term indicators are rolling over. The roll over fits a bullish market scenario if it continues. I would like to think that the selling has concluded here but my conclusions lately have been way off the mark. I would expect some major market movement after the election results are in but would only be guessing if I were to say which way. We'll let the market prove to us where it wants to go. Should be interesting. Europe and Asia were higher overnight so perhaps money is finding its way back into stocks. Or it could be a beginning of the month cash flow situation. We'll keep an eye on the overnight developments.

Back to the downside as the Dow fell 157 points on very good volume. The advance/declines were negative. The summation index continues lower. We were off over 500 points but a last hour rally brought the most watched index back. Still short term oversold but it looks like the Dow is trying to hold on to its 200 day moving average. The S&P 500 remains short term oversold and is trying not to break the lows of September. The NASDAQ did lead the way lower and that is not a positive. Pandemic virus angst combined with election uncertainty has led to the current market environment. Some things should clear up by Wednesday morning. But just how the market reacts to the election results is anybodies guess. The oversold condition would normally lead you to purchase the SPY calls. However the fact that we've been oversold and are staying that way warrants keeping any possiblity out there. Caution is the word for now regarding the SPY. GE was up a few cents on good volume. Gold had a bounce as the futures rose about ten bucks. The US dollar finished little changed. The XAU was up 2 3/8, while GDX added 1/2. Volume was better than it's been. My GDX November calls are still losers, just not as much. The entry timing here was atrociuos however I think that I can cut the loss down. My open order for the lower strike price GDX November calls was not filled again. I'm leaving it out there but I don't think it will get filled. GDX has already begun to move higher and the short term indicators are turning back up. I'm now fairly confident that the calls here will prove to be the proper selection. However the ones that I have already purchased are so far out of the money that they won't prove to be capable of turning a profit. There are still three weeks to go in the November option cycle but the optimum time to purchase the calls was over the past two trading sessions. I was early. Mentally I'm feeling a bit frustrated as I would like to get my order for the lower strike price GDX calls filled. I cannot let that affect what I'm doing though because there will be opportunities in the coming days. The recent volatility creates favorable circumstances for trades. The VIX closed much lower than where it opened and is still overbought. It opened above 40 and closed near 38. I think that it is forming a top here and that would lead to a rally in stocks. But everything that I've thought in the past two weeks or so has been off target. So I would take anything said here with a grain of salt. Markets can remain oversold for quite some time just like they can remain overbought. With the NASDAQ leading the way lower I'll say once again caution is advised. We should get some kind of resolution about future policy when the election results are in. How the market reacts to it is the question. We would only be guessing at the answer. I'll be double checking my work over the weekend to come up with a strategy for next week. Asia was down and Europe mixed to finish the week and the month. It's Friday afternoon and time for a break.

A weak bounce today as the Dow rose 139 points on heavy volume. The advance/declines were 2 to 1 positive. The summation index is moving lower. We had been up over 350 at one point. Somethings going on here but I don't know what. Tech earnings after the bell should set the tone for tomorrows open barring any other overnight developments. The S&P 500 remains short term oversold. We'll get the end of the month tomorrow and the trading could be skewed. We'll follow the summation index and the trend is down. I'm not sure what to expect next, so no SPY trades in mind for now. GE was off a few cents on good volume. Gold was off around half a dozen while the US dollar continued higher. The XAU was up 2 1/4, while GDX added 3/8. Volume was average. The gold shares followed stocks once again. Normally I'd say that it's bullish that the gold shares rose with the price of gold going down. But these aren't normal times. The rise in the US dollar would be a headwind for gold if it continues. My GDX November calls are still solid losers. I do have another open order for the GDX November calls at a lower strike price out there. I may cancel it tonight after I review todays price action. The technicals say buy the gold shares here but my thinking has been pretty wrong lately. Mentally I'm feeling OK. The VIX was lower today and that fits with an up market. Still overbought here and the VIX is saying that the decline is probably over for now. We'll see. Hopefully things will start to become clearer when we get the election out of the way next week. We're entering a favorable seasonal period for stocks but this year has been anything but predictable. I think that we'll just let the week and month come to a close. Asia and Europe were mixed overnight. We'll see how things go tomorrow.

The market fell apart today. The Dow lost 943 points on heavy volume. The advance/declines were over 10 to 1 negative. The summation index is heading lower. We'll take our cues from there as we should. Whatever I've said about a rise in stocks is wrong. Todays price action confirms that. When there's buy signals that don't work you have to take notice. Oversold now and staying that way and that isn't a good sign going forward. I certainly don't know what the story is here but the market does. I'm not sure how far down the S&P 500 will go but the next support is at 3200. Unknown to me why this is happening but if it is a double top here the measuring objective is around 2900 or so for the S&P. That's pretty far from where we are right now. The summation index is not near the crash zone but I suppose that doesn't mean it can't happen. I guess we'll see if 3200 holds and take it from there. GE bucked the trend and was up 1/3 on extremely heavy volume. Surprise earnings report there. Gold got clobbered as the US dollar was higher. The October futures contract lost $36. The XAU fell almost ten points, while GDX shed 2 1/3. Volume was double what it's been lately as it expanded to the downside. My GDX November calls are now solid losers. I'm thinking that if I give it a few days I can cut the loss a bit from where it is now. Maybe. I did place an order for some other GDX November calls at a lower strike price but it wasn't filled. That may not be the best idea here but the gold share index is oversold and the technical indicators are in a spot where they've rallied from in the recent past. However if the market continues to drop like it did today, it will take the gold shares with it. If the gold futures can't hold the $1850 level, this idea will fail. I probably shouldn't chase things lower here so we'll see what I decide over the evening. Mentally I'm feeling OK. The VIX jumped to over 40 and is very overbought. I guess the question is how high will it go and how long will this last? Volatility is through the roof but it can go higher. One of the more prudent things to do right now is simply head for the sidelines. In my view, unknown market forces are at work here. Oversold and staying that way doesn't happen often. The ensuing declines are usually pretty severe. The reason I'm a believer in the gold shares here is because the technical indicators both short and medium term are in spots that have led to rallies. Will this time be different? It could be but the odds say otherwise. Sometimes in markets like these, you can't be afraid to take a chance and support your ideas. The volatility works both ways and does create opportunities if you are able to take advantage of them. Tomorrow will prove to be another interesting session. We've got the GDP report and earnings from a few of the big tech companies. Money is heading for the exits though as Europe had big drops in stocks. Asia was slightly lower but should play catch up tonight. We'll keep an eye on the overnight markets and see how things go tomorrow.

Some follow through downside for the Dow as it lost 222 points on average volume. The advance/declines were 2 to 1 negative. The summation index is moving lower. It was a sideways affair for the S&P 500, while the NASDAQ posted a gain. So a mixed bag to say the least. Getting to oversold on the short term technical indicators for the S&P. I think that we are about to head higher and will possibly reach new all time highs before the November option expiration. One of my medium term indicators is starting to flash a buy signal. This indicator gives signals that last for weeks not days. Unless things just completely fall apart here, the signal will prove to be valid. Now I have been bullish in the face of a two week decline. But I think we are simply in a pause before we start to move back up. GE was off 1/4 on good volume. The short term indicators have rolled over here. Gold finished up around $5 on the October futures. The US dollar was slightly lower. The XAU gained 2 2/3, while GDX was up by 5/8. Volume remains very light for the gold shares. My GDX November calls are about where I bought them. Still oversold for GDX, so I'm hoping we are in the beginning of a sustained move higher. But I can't rule out more sideways price inactivity ahead of the US election. Mentally I'm feeling OK. The VIX was higher again today and we are short term overbought. The VIX should turn around here and that would imply higher stock prices going forward. Perhaps the GDP report on Thursday will be a catalyst for some buying ahead of the election. The background remains the same with the pandemic virus and uncertainty around the election as the main concerns. A positive NASDAQ today is a plus for the bulls. I'm already in the trade that I was looking for so it's a watch and wait mode for now. I am considering getting some SPY calls but the premiums there remain elevated. Still plenty of time in the November option cycle. Europe and Asia were lower overnight. We'll see what tomorrow brings.

The Dow got pounded to begin the last week of October as it lost 650 points on average volume. The advance/declines were 7 to 1 negative. The summation index is now moving down. It could have been worse as we were off 950 points in the morning. Selling everywhere as the realization that a stimulus deal isn't going to happen hit home. The short term technical indicators for the S&P 500 turned lower. The S&P did try to hang on to its 50 day moving average though. 3400 is holding for today but any follow through selling will take that number out. I have been constantly bullish over the past couple of weeks and that prognosis has been proven wrong. Not sure where we go from here. I'm on the sidelines with regards to the SPY for now. GE was off a quarter on good volume. Gold finished little changed on the futures as the US dollar was higher. The gold shares followed the market lower. The XAU lost 2 1/2, while GDX shed almost 2/3. Volume remains light here. Not completely oversold now for the gold shares but we're getting there. My open order for the GDX November calls was finally filled. It's showing a small loss. The calls are out of the money but have plenty of time to work. I'm not exactly sure if this is the right idea for now but after looking at things over the weekend I decided to take the chance. There is the possiblity that we simply go sideways for the gold shares and that is the caveat with this particular idea. I do not think that a huge decline is going to happen with gold right now but my take on things hasn't exactly been right lately. Mentally I'm feeling a bit tired. The VIX spiked up with the huge loss today. We closed above the 200 day moving average and also above the 33 level. The indicators here spiked up as well but there is still some room to go a little higher. Follow through selling tomorrow will take us to short term overbought on the VIX. I'm not sure what is going on here but it appears that we'll be heading lower in a hurry. The market, as always, knows way more than we do. Unless we see some kind of turnaround tomorrow, the selling will continue. It is also looking like a big picture event as markets around the globe sold off. We'll know in due time what the real cause was but for now we'll just have to enjoy the show. There will be opportunities and I hope that I found one today with the gold shares. We'll see. Europe and Asia were lower overnight with the DAX taking the brunt of it. We'll be keeping an eye on the overnight developments.

Kind of a mixed bag today as the Dow was lower and other indices were higher. The most watched index fell 28 points on average volume. The advance/declines were almost 2 to 1 positive. The summation index is moving sideways. Both the NASDAQ and the S&P 500 sported small gains on the session. We are running in place here. The short term technical indicators for the S&P remain mid-range. It feels like we are in a holding pattern until the results of the US presidential election. The pandemic virus remains. The stimulus package is still all talk and no action. The market remains a hostage to these outside influences. I still think that we're heading higher but sideways is the trend for now. GE was off a few cents, dropped from its highs for the day and is overbought. Gold was off a few bucks but did finish up off of the lows. The US dollar was lower. The XAU was down about a point, while GDX shed 1/3. Volume remains very light. My open order was almost filled today for the GDX November calls. I'll decide over the weekend if this is a trade that I really want to do. Not completely oversold here yet so I may have to adjust the order. I'll see how gold is trading on Sunday night and take it from there. Mentally I'm feeling OK. The VIX was lower today and is heading back towards its 50 day moving average. The short term indicators have turned back down and have room to go lower. The TRAN and the Russell 2000 were both up today and I think that bodes well for the bulls moving forward. I'm still leaning bullish here on the market but we may have another week of sideways malaise. I could be wrong and often am. Lately my view on the markets hasn't been accurate. We'll see if it gets any better as we go along in the November option cycle. Europe and Asia were generally higher to finish the week. I'll be checking the charts as usual over the weekend and deciding what to do about the potential GDX November call trade. It's Friday afternoon and time for a break.

Higher today as the market shrugged off overnight bad news. The Dow gained 152 points on good volume. The advance/declines were better than 2 to 1 positive. The summation index is tracking sideways. The S&P 500 has held its 50 day moving average. The short term technical indicators appear to be trying to turn back up and they remain mid-range. I'm still looking for higher prices going forward. The market remains hostage to the pandemic, upcoming election and stimulus negotiations. However with plenty of time in the November option cycle, there's no rush to trade. GE was up 3/8 on average volume. Gold dropped back today as the futures fell twenty bucks. The US dollar was higher. The XAU shed 1 2/3, while GDX lost 3/4. Volume was light. The gold shares did rebound from their worst levels of the day. My order remains out there for the GDX November calls as todays drop was not enough to trigger it. I do think that GDX will eventually trade higher although we cannot rule out and extended sideways pattern. That's about what we're seeing now. Mentally I'm feeling OK. The VIX fell and that coincides with a rise in stock prices. The short term indicators here have rolled over and imply higher prices going forward. If we can get the summation index moving up again, that would be the all clear for a rally. Hasn't happened yet but I do think that it will. May have to wait until after the election though. For now we'll watch and wait for a good signal one way or the other. Europe and Asia were generally lower in last nights trade. We'll close out the week tomorrow.

It was an up and down session as the Dow fell 98 points on good volume. The advance/declines were around 2 to 1 negative. The summation index is still moving sideways. The market is being held hostage by the political drama in Washington. Stimulus or no stimulus, deadlines passed and extended. It's a non stop government soap opera. The S&P 500 technicals are still mid-range so we'll wait to see which way they go. I'm still looking for higher prices in the near term. Of course I've been saying that for a week and it hasn't happened. No SPY trades in mind for now. GE lost a couple cents and the volume was pretty light. Gold found a bid as the futures were up around $15. The US dollar continued lower. The XAU rose two points, while GDX was up about 1/2. Volume remains light here. My open order for the GDX November calls remains out there but it might be too late. The short term technical indicators for GDX are starting to turn around. This won't be a trade that I chase though. Either my order gets filled where I have it or I'll pass. Mentally I'm feeling OK. The VIX was lower today with lower prices and that's not the usual reaction either. We did not break the 200 day moving average to the upside here and we are at the top of a trend channel. So my thinking is that we'll be seeing a lower VIX and higher stock prices going forward from here. The short term technical indicators have also started to roll over. If we get an announcement of a stimulus deal the market will have an excuse to rally. Hasn't happened yet. For now I'm trying to remain patient as we wait to see what the future holds. Still in the pandemic virus mode along with pre-election angst. We'll have a better picture after November 3rd hopefully. Asia higher and Europe lower overnight. We'll see what tomorrow brings.

A bounce today as the Dow gained 113 points on good volume. The advance/declines were 2 to 1 positive. The summation index is trending sideways. Still waiting on a stimulus deal and we should know before the open tomorrow. Todays upside was expected as we did have an oversold signal on one of the technical indicators that's usually reliable. The question now is was it a one day bounce or the beginning of something sustained to the upside? I'm inclined to believe the latter, as I think that some kind of deal will be reached and the market will rally. Just a week ago the talks had supposedly ended but we see where we are now. I guess the Tuesday deadline for the stimulus talks could be extended as well. We're dealing with politicians so you can't really believe anything that you hear. The market is held hostage to this nonsense for now but it too will pass. The S&P 500 technical indicators on a short term basis are mid-range. Could go either way here but I still think that we'll move higher from these levels this week. GE was up a nickel on lighter volume. Gold was up eight bucks as the US dollar was lower. The XAU rose 1 2/3, while GDX added 1/3. Volume remains pretty light. My open order for the GDX November calls remains out there. I guess the most I can hope for here is that GDX trades sideways for a while and perhaps the order eventually gets filled. Plenty of time in the November option cycle for GDX to get oversold though. That would be the reasonable and ideal time to try the calls there. Mentally I'm feeling OK. The VIX was a bit higher today despite a rise in the market again. This has spelled near term trouble for stocks lately but not long lasting. I have no idea what it means this time around. I haven't been able to wrap my head around what the VIX has been doing lately. One day it acts like it should and another it does the opposite. It is short term overbought and I would expect a drop in the VIX and a rise in stock prices in the coming days. That's my best guess right now. However my ideas on the market haven't been exactly correct lately and hence that's why I'm not trading the SPY right now. Not to mention the expanded option premiums due to the extra week in the November cycle. Asia was mixed and Europe lower overnight. We'll see what kind of announcement we get on the US stimulus package and take it from there.

The Dow fell 410 points today on good volume. The advance/declines were around 3 to 1 negative. The summation index is now starting to roll over. Worry about a stimulus deal is the excuse for todays sell off. The short term indicators for the S&P 500 have turned down and are heading lower. They are mid-range at the moment. I certainly thought that by now we would have turned higher but my read on things here was wrong. I am now getting a buy signal from one of my technical indicators but with so much time left in the November options I'm not going to venture into the SPY calls. Premiums are high for the options. However if a stimulus deal is announced, you can expect quite a short term rally in my view. Conversely if a deal isn't reached, lower prices will ensue. GE was flat on the day and the volume was good. Gold was off a buck or so and the US dollar was lower. The XAU fell 2 3/4, while GDX lost 2/3. Volume remains very light. Once again the gold shares are leading the way lower and that's bearish for the precious metals complex. Nonetheless I'm keeping my open order out there for the Novermber GDX calls. If GDX continues to drop it should get filled. Not yet oversold on the short term for GDX but we're getting there. Mentally I'm feeling a bit tired. The VIX once again foreshadowed a drop in prices when rising with a rise in equity prices last week. The previous time it led to a quick decline that was not long lasting. It was higher today which fits in with a down market. Just about short term overbought on the indicators there. Combine that with a short term buy signal that I mentioned before and a case can be made for the SPY calls here. I'm not willing to take that chance though. But I would not be surprised if a stimulus deal is reached tomorrow and the market rallies. I would be surprised if some kind of deal isn't reached. We can simply wait and see. There is so much time left on the November options that there will be other opportunities down the road with lower option premiums. Asia was higher and Europe slightly lower to begin the trading week. We'll keep an eye on the overnight headlines.

A mixed bag to finish out the week as the Dow gained 112 points on expiration heavy volume. The advance/declines were negative. The summation index is still moving up. The overall market was weaker than the Dow, with the NASDAQ finishing in the red. I do not think that the major averages are putting in a double top here but I could be wrong. The lack of upside follow through from Mondays stellar gains is a concern. However the price action this week could have simply been option expiration driven although we did not see the usual upside bias. The S&P 500 remains short term overbought but not excessively so. The market does have a lot of noise in the background which probably won't be resolved until after the election. I'm still looking for higher prices going forward unless the summation index starts to fall. GE was up 3/8 on heavy volume. Gold lost a few bucks and the US dollar was lower as well. The XAU was off two bucks, while GDX shed about 1/2. Volume was very light. I'm leaving my open order out there for the GDX November calls. I'll revisit this idea over the weekend to see if it is still viable. Mentally I'm feeling OK. The VIX was up today despite a gain in the Dow and that has led to lower prices going forward lately. I'm having a hard time figuring this indicator lately. The short term technicals here are still mid-range. Could go either way. An extra week built in to the November options raises the premiums paid. No real rush to do anything as I'm not exactly getting any clear signals. The market isn't fond of unkowns and we've got quite a few at the moment. I'll go over the charts again this weekend and try to figure something out. I am still a believer in the gold share calls. Europe was higher and Asia mixed to close out the trading week overseas. It's Friday afternoon and time for a break.

An interesting session as the Dow lost 20 points on average volume. The advance/declines were positive. The summation index is still moving up. We opened with a huge gap lower and the Dow was off over 300 points. We made our way back for the rest of the trading day. Jobless claims were up a bit and that was the handy excuse for the drop but the market was selling off overnight too. Not seeing the usual upwards bias for option expiration week and I've been waitng for that but it isn't happening. The short term technical indicators for the S&P have rolled over, however I'm convinced that things will turn around and head higher soon. The overall market was weaker than the Dow but the comeback tells me that buyers are out there. We'll see. No SPY trades for now. GE was up a nickel on average volume. Gold was up a few bucks and the US dollar was higher as well. A flight to safety? I certainly don't know. The XAU was off around 1 2/3, while GDX shed 2/3. Volume remains light. Gold up and the gold shares down isn't bullish. I am leaving my open order out there for the GDX November calls. Mentally I'm feeling OK. The VIX finished well off of its highs for the session. The Bollinger bands here are getting closer and a big move in this indicator is implied. The short term technical indicators here are now mid-range. So things could theoretically go either way. I'm looking for higher stock prices from here but that's just my point of view. The market will go where it wants to. The overall backdrop remains the same and that probably won't change until after the election. Europe and Asia were lower overnight. We'll close out the week with option expiration tomorrow.

Some more selling today as the Dow fell 165 points on average volume. The advance/declines were negative. The summation index is moving up. As long as the summation index keeps moving forward, the path of least resistance is higher. The overall market was a bit weaker than the Dow. Not seeing the usual upside bias for expiration week yet or perhaps it got used up on Monday. Not much to report as the backdrop remains the same. New stimulus blabbering back and forth with no resolution. The pandemic virus remains. Upcoming election nonsense with the market pretty sure of a Joe Biden victory. Still overbought on the major stock indices. GE was up a dime on average volume. Gold bounced almost $20 on the October futures today as the US dollar was a bit lower. The XAU added two points, while GDX rose around 2/3. Volume remains light. My open order for the GDX November calls remains out there but it already may be too late. The gold shares are acting better than the precious metal and that's our cue to look at the long side. Short term overbought for GDX but if the rally is already in progress that won't matter. The Bollinger bands here are beginning to contract but aren't all the way there yet. Staying patient for now but might have to look elsewhere for the next trade. Mentally I'm feeling OK. The VIX was up again today and that fits well for a change. The short term indicators there have turned up but thay look like they want to roll back over already. That would support higher prices. My guess is that whatever selling that we're seeing now will dry up rather quickly and the uptrend in stocks will continue. Europe and Asia were mixed in last nights trade. We'll keep an eye on the overnight developments.

Just some profit taking today in my mind as the Dow fell 157 points on average volume. The advance/declines were 2 to 1 negative. The summation index is moving up. The NASDAQ was barely negative and that tells us that the decline is not the start of anything big. Still short term overbought for the major averages. It is expiration week which usually has a positive bias. So we'll see if things turn around back to the upside tomorrow and if we can get to new all time highs. GE was off 1/8 on lighter volume. Gold got clobbered today and that negates the breakout on Friday above the declining tops line. The precious metal futures were off almost $35 per the October contract. The US dollar was higher. The XAU lost 1 1/8, while GDX shed 3/8. Volume remains light here. The gold shares finished well off of their lows for the session. A big drop in gold without a big drop in the gold shares is bullish going forward in my view. I did place an open order for the GDX November calls but it will take more of a decline to get filled. The short term technical indicators for GDX are still overbought so a decline here isn't out of the question. Mentally I'm feeling OK. The VIX was higher today and that fits with the market decline. The indicators here have started to turn back up but not dramatically so. I don't have any SPY trades in mind right now. I do think that we'll head higher into Fridays option expiration. The pandemic virus remains along with the stimulus deal bickering. The market continues to price in a Joe Biden victory. Asia higher and Europe lower last night. We'll see what tomorrow brings.

The market continues to power higher as the Dow gained 250 points on average volume. The advance/declines were positive. The summation index is moving up. The NASDAQ is the leader here and that's bullish. We'll see how high things will run up into expiration on Friday. Getting close to new all time highs and at this rate we'll be there this week. Starting to just go straight up though and that never ends well. GE was flat on the day with average volume. Gold and the US dollar finished little changed on the day. The XAU and GDX had slight fractional losses on very light volume. I've decided against trying the GDX calls this week in the October option cycle. I will attempt them for the November cycle if the opportunity presents itself. I'm still a believer in the gold break out and will wait for the snap back to the breakout line before trying the calls. Mentally I'm feeling a bit tired, not sleeping well. The VIX had a very slight gain but that still does not match up with todays market rally. Back to oversold here on the short term technical indicators. Pretty overbought for some of the S&P 500 indicators but not all. Perhaps we'll pause before getting to new all time highs as the potential double top pattern will appear. But that's just a guess as usual on my part. All indications in my mind are that we're going higher for a while. Earnings season is upon us and the market has made up its mind that Joe Biden is going to win the upcoming election. The pandemic virus remains but it appears that the market has learned to live with that. Europe and Asia were generally higher. We'll keep an eye on the overnight headlines.

No sellers to be found as the Dow rose 161 points on average volume. The advance/declines were about even. The summation index is moving higher. The NASDAQ is leading the way and that is good news for the bulls. It was a good week for stocks and I think that the run up will continue into option expiration next week. Pricing in a Joe Biden victory and there is still plenty of money to go around. If they ever get a stimulus deal done we'll even go higher. At this rate we'll be hitting new all time highs in no time. Overbought now and staying that way for the major stock averages. GE was up over 1/8 on very heavy volume. Gold took off to the upside today with the futures breaking through the down trend line that has been in effect since August. That is significant and I'll be getting some GDX calls on a snap back to the breakout if we get one. The October gold futures gained $36 as the US dollar got whacked. The XAU was up 6 2/3, while GDX added over 1 3/4. Volume expanded to the upside. I did try to purchase some GDX October calls today but my orders were not filled. Even though there is only a week to go in the October option cycle, todays price action lets you know that the gold shares are on their way up. The picture here has changed. I'm looking out to November as well here and will be buying some calls for that month in the near future. Perhaps as early as Monday if the opportunity presents itself. The original idea here has now been proven to be valid but we could not know for sure until gold broke through the declining tops line. Of course things can change just as quickly the other way around but I do believe what we've seen today for the gold shares is the beginning of a move higher. Mentally I'm feeling OK. The VIX was lower and finally closed below the 50 day moving average. This says that the current rally will have legs and we'll most likely be going higher than anyone expects at the moment. We can also now look back and say that the recent decline was simply a correction in an ongoing bull trend. Once again, declines can be bought. Expiration week is upon us and higher prices are expected. I'll be looking at the SPY October calls over the weekend as well as the GDX calls in hopes of landing an entry point but it may be too late. Plenty to ponder in an effort to find a winning trade. Asia was mixed and Europe higher to finish out the trading week. It's Friday afternoon and time for a break.

Continuing higher as the Dow gained 122 points on average volume. The advance/declines were 3 to 1 positive. The summation index is moving up. Short term overbought on some of the techncial indicators for the S&P 500 but during rallies we stay that way. Perhaps things will run up into option expiration next Friday. We're still at the mercy of a negative headline but we saw how the market recently handled that. Factoring in a democratic win for the US election is what's going on now according to some circles. The market is always looking ahead. The pandemic virus isn't going away anytime soon though. GE was up 1/3 on good volume. Gold was up almost $10 on the futures. The US dollar finished little changed again. The XAU gained 2 1/2, while GDX was up 2/3. Volume was pretty light. I canceled my open order for the GDX October calls. With only six days to go in the October option cycle, I'm not sure that I want to try this trade anymore. I may reconsider that but I'm also now looking out to the November option cycle for GDX. I do think that gold has been in a corrective decline before it starts to move back up. The question is how long will that decline take? Mentally I'm feeling OK. The VIX was lower today. It touched its lower Bollinger band and bounced off. That bounce caused it to close back above the 50 day moving average. The 50 day moving average has held every drop in the VIX since the sharp decline for the market in the beginning of September. We'll see if it holds this time as well. I'm not exactly sure what that means for near term prices in stocks because the short term technical indicators are now moving lower here. I don't have any SPY trades in mind. Europe and Asia were higher in last nights trade. We'll close out the week tomorrow.

We blasted back to the upside today as the Dow gained 530 points on average volume. The advance/declines were shy of 3 to 1 positive. The summation index is moving higher and we'll take our cues from there. I certainly did not expect the market to come back so quick. Declines can be bought. SPY is heading back to the 342 level and it is getting short term overbought. But the market has simply shrugged off yesterdays bad news and we must respect that. So I'm tossing out the idea of trying the SPY puts at 342. That time has come and is gone in my mind. GE was up 1/8 on average volume. Gold stabilized as the futures were up around $10. The US dollar finished little changed. The XAU was up a point, while GDX added 1/4. Volume remains light. I still have my open order for the GDX October calls out there. There's only seven days left in this option cycle. So the risk is certainly out there if the order gets filled. There's also seemingly no interest in the gold shares and that's been going on for a while. I'll consider what to do with this idea tonight. Mentally I'm feeling OK. The VIX was lower and the short term indicators are turning back down. That makes sense for a change. It also implies higher stock prices going forward but it won't be a straight line up. It appears that the market is pricing in a Joe Biden victory for the upcoming US presidential election. Who knows, maybe we'll make it back to new all time highs in the next couple of months. I'll be checking out GDX in depth tonight and go from there. Asia was higher and Europe mixed last night. We'll keep an eye on the overnight developments.

Headline risk. It's always out there and today we got a taste of it. The Dow fell 375 points today on good volume. The advance/declines were negative. The summation index is still moving up. The Dow was up around 200 points with an hour and a half to go in the trading session. It was an uneventful Tuesday in October. All of a sudden the headline passed on the wire. The US president has canceled the stimulus talks until after the election. The market did not like that and decided to give up all of its gains and then some. I'm not sure how long the drop will last but we'll most likely get some follow through selling in the morning. We now have bearish dark cloud cover on the daily stock index candlestick charts. It is probably too late for the SPY October puts but we'll see. SPY did make it to 342 today but the market was cruising along and I did not want to try the puts. Opportunity missed or so it seems. GE lost 1/4 on heavy volume. Some kind of negative IRS news there. Gold got pummeled after the stimulus was placed on the back burner. The futures fell well over twenty bucks and back below the $1900 level. The US dollar was higher. The XAU dropped 5 3/4, while GDX fell 1 1/2. Volume picked up to the downside. I adjusted my open order for the GDX October calls and it hasn't been filled. I'm not sure this is the right trade to do now because the fundamental background has now changed with no stimulus bill in sight. The short term technical indicators have now also rolled over and are heading back down to oversold. Perhaps going out to the November option cycle has a better chance of showing a profit. Or not. I'll check things over again tonight. Mentally I'm feeling a bit distracted. Outside events are creeping in but I'll do my best to focus on what needs to be done here. The VIX was higher today as it should be. Once again the rising VIX yesterday with the rise in market prices preceded a drop. It is simply another reminder that the market knows all. There's still some room on the short term indicators to move up before the VIX is overbought. That means we should see some more weakness in the near future. Of course we could get another headline overnight and things could change again. There's plenty of room in the S&P 500 indicators to move lower though. Perhaps we'll make it back for a test of the recent lows. Or we may just move sideways from here. Maybe the market will simply move back up higher tomorrow from here but I doubt that scenario. If it sounds like there's a lot of uncertainty now, there is. I'll check things again tonight and take it from there. Europe and Asia were higher last night but that will probably change tonight. We'll see what tomorrow brings.

The Dow took off to the upside to start the week and gained 465 points on light volume. The advance/declines were 3 to 1 positive. The summation index is moving up. Declines can be bought in my humble opinion. The US president will be out of the hospitial tonight, so that worry is over for now. However we are always at the mercy of headline risk, sometimes more than others. The short term techncial indicators for SPY are getting overbought but not all the way there yet. 342 is a level to watch at the top of the Bollinger bands. That would be an area to try the October SPY puts but the overall trend is up and it would have to be a quick trade. GE was up a couple cents and the volume was light. Gold found a bid on the weaker US dollar. The yellow metal futures were up around ten bucks. The XAU was up 2 3/4, while GDX rose 5/8. Volume remains light here. The gold futures are up against a declining tops line and it will take some volume to get through it. I replaced my order for the GDX October calls at a lower strike price. If we get a decline there it may be filled but time is running out for this idea. Trying the SPY October puts may be the next trade that I do instead. We'll see. Mentally I'm feeling a bit tired, did not sleep well. The VIX finished a bit higher despite the rally and that doesn't make sense again here. The short term indicators have turned up but the market is advancing. The last time this happened it led to a decline but it took a while. I'm not getting reliable information from my analysis for the VIX lately. Some economic data due out this week but I think the market is waiting on the next stimulus deal. Perhaps it will be a sell on the news event since we are already moving higher. It could be that the market is now factoring in a Joe Biden victory for the November election. The polls are certainly pointing that way and I'd have to agree. I'm still looking for a winning trade in the October option cycle. It's out there somewhere. Europe and Asia were higher to begin the week as well. Perhaps breathing a sigh of relief. We'll keep an eye on the overnight developments.

Headline risk returned as overnight it was reported that the US president had contracted the pandemic virus. The Dow had a huge gap lower at the open and was down over 400 points. It tried to recover throughout the session and finished with a loss of 137 points on average volume. The advance/declines were positive. The summation index is barely moving higher. The overall market was much weaker than the Dow with the NASDAQ leading the way lower. That implies that there is more downside to come. Volatility has taken center stage again. The jobs report was a bit light but it remained in the background. Two weeks to go in the October option cycle and I get the feeling that anything can happen. However the market did hold up as far as the Dow is concerned because things could have been a lot worse. GE was up over 1/8 on average volume. Gold was slightly lower on the futures as the US dollar was a bit higher. The XAU was off 1 3/4, while GDX shed around 2/3. Volume remains light. Gold bounced around but could not support a gain despite the new uncertainty thrown into the picture. We could just be stuck in a low volume sideways trend until further notice. I canceled my open order for the GDX October calls but may try again next week if we continue to drift lower. Perhaps I'll look out to November but that option cycle has an extra week. Mentally I'm feeling OK. The VIX spiked higher and finished in the black but did come off of the best levels for the day. The short term technical indicators here have now turned back up. We are now at the mercy of the US presidents health and there is no predicting how that will go. It would not be out of the question to simply step aside here but I'll be looking for some kind of technical signal to trade off of. The market here to me seems pretty resilient. I'm still a believer for now that the decline is over but a sideways drift isn't out of the question. The short term technical picture for the S&P 500 looks like it wants to roll over but the medium term indicators appear to be trying to stabalize and perhaps turn back up. Trading here is choppy and being nimble is probably the best strategy for now. I'll go over the charts again this weekend and try to come up with a game plan for next week. Most of Asia remains on holiday but Japan was lower. Europe finished mixed. It's Friday afternoon and time for a rest.

Another back and forth session as the Dow gained 35 points on average volume. The advance/declines were around 2 to 1 positive. This should point he summation index higher. The overall market was much stronger than the Dow, with the NASDAQ way out in front. This is a plus for the bulls. We'll see how things go tomorrow with the jobs report but the technical signs are pointing to higher prices regardless. There's also more talk of getting the stimulus deal done but that hasn't happened yet. The short term techncial indicators for the S&P 500 are still pointing up. The contracting Bollinger bands seem to limit the potential upside here but there is still room to go higher. Of course a big negative session would change the picture. GE was up a penny on average volume. Gold had a good session as the futures rose over $15. The US dollar was slightly lower. The XAU added 1 1/2, while GDX was up 3/8. Volume remains light here and that is not a plus for the gold bulls. With gold up good again and the gold shares languishing here, it isn't a strong environment at the moment. Nonetheless I've left my GDX October call order out there for now. It will still take a decline in GDX to get it filled. But this idea is running out of time. Mentally I'm feeling OK. The VIX closed higher today with a gain in stocks. It's still above the 50 day moving average. I'm not getting a clear picture from the VIX lately. The SPY has almost had a 50% retracement of the decline. Perhaps this is where the recent rally will take a rest. The short term indicators here are not yet completely overbought though. I do think that the decline has run its course but as I said before that doesn't mean that we'll just go straight up. My indecision as to what to do here has me on the sidelines with regards to the SPY for now. I'm hoping to get some kind of solid signal before the October option cycle comes to a close. Most of Asia is on holiday for a week and there was an electronic malfunction in Japan that shut things down there yesterday too. Europe was mixed. We'll await the employment report tomorrow morning and see the market reaction is.

It was a wild ride to end the month as the Dow gained 329 points on good volume. The advance/declines were positive. The summation index is still trending sideways. Overnight the S&P futures sold off and the Dow was off over 300. The market roared all the way back by the open and was up over 500 points. With two hours to go the Dow suddenly dropped 400 points. It then bounced back to finish the day where it did. A lot of end of the month and quarter volatility. The overall market wasn't as strong as the Dow. I'm not exactly sure what it all means but we could have sold off today but didn't. The advantage is with the bulls. October starts tomorrow and we'll see how that goes. Jobs report on Friday should be a mover. GE was up 1/8 on average volume. Gold dropped about $5 on the futures. The US dollar finished little changed. The XAU and GDX had slight fractional losses on pretty light volume. The light volume shows the lack of interest here for the gold shares either way. I do still have an open order out for the GDX October calls. However this is one to be careful with because the monthly candlestick chart now for gold shows a topping pattern. This implies that gold will be heading lower or sideways at the least. The gold shares are short term oversold here and if we get a rollover here again on price, it could set up the call trade. It's a risky one however and time is running out day by day. Mentally I'm feeling OK. The VIX finished a bit higher despite the rally in stocks. It once again bounced off of its 50 day moving average. If it could get through the 50 day moving average, then the rally would have some legs most likely. The S&P 500 is stuck at its 50 day moving average as well. I'm not really sure as to what to do with the SPY right now so I'm on the sidelines there. The short term techncial indicators here have moved up but not convincingly so in my mind. We'll know more as the week progresses. The pandemic virus backdrop remains along with the upcoming presidential election. The ongoing stimulus drama is in the picture as well. There's room for good news to drive things higher. Last nights presidential debate was viewed as a disaster but the market came back from the overnight drubbing. Perhaps that's a clue as to the underlying sentiment. That's a guess as usual. Europe and Asia were lower overnight. We'll see what tomorrow brings.

It was a back and forth session as the Dow fell 131 points on lighter volume. The advance/declines were negative. The summation index is trending sideways. It looks like the backing and filling has begun but that could change tomorrow. The NASDAQ did not lead the way lower here and that is a plus for the bulls. We'll get the end of the month position squaring tomorrow before we head into October. Waiting for the market reaction to the jobs report at this point. The S&P is hanging around its 50 day moving average. If this continues, I might try the SPY October puts ahead of the employment report. We've come up about halfway on the short term techncial indicators for the S&P 500. GE was off a few cents on lighter volume. Gold continues higher, the futures rose $15. The US dollar was lower again. The XAU was up 1 2/3, while GDX added 1/2. Volume remains light here. I did place another open order for the GDX October calls but it would take a decline to get filled. If GDX continues to move up I'll cancel the order. Today was a repeat of yesterday. Gold itself had a fairly good day but the gold shares didn't follow suit. That is not usually a sign of strength for the precious metals complex. Mentally I'm feeling OK. The VIX finished barely higher despite a drop in stocks. Once again this is a tough indicator for me to get a correct read on lately. I'm leaning towards the SPY puts again for a short term trade if things set up properly. I do not think that we're going to simply move higher from here to new all time highs again but I could be wrong. The summation index is trying to turn around and down trends lines have been broken on some of the major indices. However that could mean a sideways market for a while and not a sustained up trend. I suppose that at the moment I don't have as good a good handle on things as I'd like to. I'll leave the GDX call order out there for now and see what happens. Asia and Europe were mixed overnight. We'll finish the month of September tomorrow.

We had a gap higher at the open and the market took off from there. The Dow gained 410 points on good volume. The advance/declines were over 5 to 1 positive. The summation index has stopped going down. Most of the major averages have now broken through their down trend lines. The recent decline has run its course for now. I do not think that we'll just go straight back up from here but weakness can probably be bought. The short term techncial indicators are pointing higher and are not yet overbought. I still do not have any SPY trades in the works. However if we continue higher and get short term overbought, I'd be willing to take a look at the puts there again. We'll see if we get a set up ahead of the jobs report on Friday. GE was up a few cents on average volume. Gold rallied as the futures gained almost twenty bucks. The US dollar was lower. The XAU rose over 1 1/2, while GDX added 3/8. Volume was pretty light. The rally in gold should have inspired more buying than what we saw today in the gold shares. I canceled my open order for the GDX October calls but I think that I'll try again at a lower strike price. I get the feeling that the gold shares just may trade sideways here for a while in the October option cycle. That's a guess on my part. The October GDX calls all lost value today even though the GDX was higher. Time and volatility value is already starting to get taken out of these options. That's another reason why trading them may not be the best course of action. There also is a ton of resistance now after the recent decline. It will take quite a push to get through it and I don't know if that is something that will happen anytime soon. But if we drift lower from here I might take the chance. Mentally I'm feeling OK. The VIX bounced off its 50 day moving average again and just moved slightly lower despite a huge run up in stocks. That doesn't exactly fit properly with the market action. Still oversold here and that's one of the reasons that I'm not completely bullish about where we go from here. The recent price action probably has a short covering element to it as well. But most of the short term indicators for the major averages have turned back up with room to run. So we'll have to give the bulls the benefit of the doubt for the near term. Perhaps that changes with the employment report later in the week but that's just another guess on my part. Some backing and filling before we go higher from here would not be out of the question. Europe and Asia were higher as well. We'll see how things trade tomorrow.

It was a good day for the bulls as the Dow climbed 358 points on average volume. The advance/declines were over 2 to 1 positive. The summation index is still moving down. The NASDAQ led the way higher and also broke through its down trend line. This index usually leads the way both up and down. The volume wasn't all that heavy though and it is still below its 50 day moving average. The short term techncial indicators have turned back up though. If we get some follow through upside on Monday, the market decline may be done for now. The S&P 500 hasn't broken its declining tops line yet but the indicators here have turned up as well. GE was up a few cents and the volume was light. Gold was off $6 on the futures and the US dollar was a bit higher. The XAU and GDX had fractional losses on very light volume. Still oversold on the short term indicators for GDX. I've left my open order for the GDX October calls out there but it hasn't gotten filled. I'll have to reconsider this idea over the weekend. There doesn't seem to be a lot of interest in the precious metal lately and the monthly candlestick chart for gold will show a topping formation come Wednesday when September has concluded. Three weeks left in the October option cycle and if I decide to pursue this trade it won't be one to hold too long. Mentally I'm feeling OK. The VIX was lower today and that fits with a strong market. Still above the 50 day moving average and a break below there would also suggest a turn for equities. Hasn't happened yet. I stll don't have any SPY trades in mind at the moment but will look things over again this weekend. The backdrop remains uncertain with the continuing pandemic virus, upcoming US election and lack of a new stimulus bill. If an agreement on a stimulus bill would occur, that should be a positive for the market. If we can get the summation index turned back up, that would be bullish too. However none of this has happened as of yet and the trend is still pointing down. Hopefully we'll know more after Monday but that could just simply be a light volume affair. We're coming up to the end of the month next week so we will have to see how that plays out as well. I'll be going over the charts this weekend and we'll see what I can find. Asia was higher and Europe lower to finish the week. It's Friday afternoon and time for a break.

We got a bounce today as the Dow was up 52 points on good volume. The advance/declines were about even. The summation index is heading lower. It was a back and forth session. We got 10 points away from the 3200 level on the S&P 500. So there is a chance that the decline is over. But the jury is still out on that. We are below the 50 day moving average on the S&P and the down trend line remains in effect for now. Oversold and staying that way. GE was off a nickel on good volume. Gold managed to stop dropping today as the futures rose five bucks and finished well off of their lows. The US dollar was slightly lower. The gold shares rallied, with the XAU gaining 5 1/8 and GDX up a point. Volume was average for lately. My open order for the GDX October calls was missed by a tick. I had adjusted the price higher overnight but it still wasn't filled. I'm still leaving it out there but it may be too late. The rise in the gold shares today says that the decline there is over in my mind because it was so much stronger than in gold itself. That is usually a positive sign. Mentally I'm feeling frustrated. Coming within a tick of being filled on a trade that I want to do is the reason. But it's happened before and it will happen again. At least the general idea is right for now. The VIX was just a bit lower today. There's still plenty of room on the short term technical indicators to rise and that would coincide with a drop in stock prices. So it is still a tricky call as to what is going to happen here. September is generally a negative month for stocks and this year is living up to that. I don't have any solid SPY trades in mind at the moment. Europe and Asia were lower last night. We'll see if they get a bounce tonight and we'll close out the trading week tomorrow.

The down trend lines remain in effect as the Dow lost 525 points on good volume. The advance/declines were 9 to 1 negative. The summation index is heading down. The NASDAQ led the way lower and if we get some follow through tomorrow it should hit a new low for the move. The S&P 500 is almost at 3200 and it will probably get there tomorrow as well. The McClellan oscillator will be very negative after today too. We'll need to see it stabalize or turn around here soon or it could get very ugly. I do not expect this decline to turn into a full on rout but the possibility is out there. We are oversold and staying that way for the major stock indices. Buyers are on the sidelines for now after yesterdyas appearance. GE was off over 1/8 on good volume. Gold got pounded lower as the futures dropped forty bucks. The support at $1900 failed. The US dollar continued higher today. The XAU lost 9 3/4, while GDX fell 2 3/8. Volume was heavy to the downside. I left my open order for the GDX October calls out there but it wasn't filled. Getting close though and I would have expected it to be filled by now. Support for GDX has been broken as well so why even attempt this trade? It looks like the trying to catch a falling knife syndrome. We've also broken down on the technical indicators where previous declines had stopped. I think if this order does get filled it will be an opportunity for some profits on the first bounce back from the decline of this week. Or gold and the gold shares could just continue to fall since the next support for the precious metal is at $1800. I'll reconsider this idea tonight. Mentally I'm still feeling tired as I haven't felt well all week. The VIX was higher today as it bounced off of its 50 day moving average. The short term technical indicators here still have plenty of room to run before reaching overbought. That says that the decline could be much longer than I am currently thinking. That would certainly spell trouble for any call side trades. So there is nothing wrong with calling off whatever I'm doing now and heading to the sidelines either. I'll consider this tonight as well. Asia was mixed with Europe higher in last nights trading. We'll keep an eye on the overnight headlines.

Higher today as the Dow gained 140 points today on average volume. The advance/declines were positive. The summation index is moving down. The overall market was stronger than the Dow with the NASDAQ leading the way. That's a plus for the bullish cause. We could see a continued bounce here and it is possible the decline is over for now but I doubt it. Resistance for the S&P comes in at the declining tops line and 50 day moving average at around 3350. That is the area that will tell the story and I'd say to keep an eye on that. We've got some economic data out this week but I think that the market is moving to its own beat for now. Also the Fed chair with some testimony before Congress, which happened today and continues tomorrow. GE was off 1/8 and the volume remains heavy. Gold was down about ten bucks on the futures as the US dollar continues higher. The XAU and GDX had fractional gains on light volume. I left my open order out for the GDX October calls. I also added another order at a different strike price since some of the indicators for GDX are where we've seen the recent declines in this index turn around. I canceled it before the close but may try again tomorrow. Gold is holding $1900 for now but with the climbing dollar the question is whether it will hold or not. I certainly don't know the answer to that but the short term technical indicators for GDX have reached oversold. This is the logical spot to try the calls. Mentally I'm feeling tired. The VIX was lower and that makes sense with an up stock market. Still above the 50 day moving average here with some of the indicators in oversold territory. It's one of the reasons that I don't think that we're done with the downside for the market. Today the NASDAQ barely broke through its declining tops line and closed just below the 50 day moving average. This index led the way down and it should lead the way back up, so it's soemthing to keep an eye on tomorrow. Gold has held $1900 and silver has held $24 support for now. I'll look things over again tonight but I'll probably be placing another order for the GDX October calls tomorrow. But it may be too late there as well. Plenty of time in the October option cycle for trading. What I want to avoid is being overconfident just because the last trade was a winner. Asia was mixed and Europe generally higher in last nights trade. We'll see how things go tomorrow.

A steep drop for the Dow to begin the trading week but it could have been worse. The most watched index fell 509 points on heavy volume. The advance/declines were around 6 to 1 negative. The summation index is moving lower. The Dow was off over 800 but a last hour comeback for stocks trimmed that loss. The overall market wasn't as weak as the Dow and that is somewhat of a plus. The NASDAQ was almost in the black today and that may be a sign that things are overdone in the short term. The daily candlestick for the S&P 500 looks like a hammer and that would be bullish. However the measuring objective from the recent bear flag is much lower. Below what I perceive as initial support at 3200. More like around 3100 if the pattern fulfills its objective. I don't think that we'll get a chance to try the SPY puts again soon but I could be wrong. GE got clobbered and lost 1/2 on very heavy volume. The rally fizzled quickly there. Gold fell today too and the futures were off over forty bucks. The US dollar was higher. The XAU shed 6 3/4, while GDX lost 1 1/2. Volume picked up a little to the downside. Gold is trying to hold the $1900 level and whether or not it does will tell us where the gold shares are going. I did place an open order for some GDX October calls but we'll need to see more of a drop to get it filled. GDX is trying to hold support here at 39. The piching Bollinger bands imply a big move and it now could be to the downside. If that's the case, you don't want the calls. Mentally I'm feeling tired. The VIX moved over the 30 level today but then fell back. Some of the short term techncial indicators here remain in the oversold range. So even with the recent volatility things haven't moved up to overbought. That could spell even more trouble down the road. Although I must admit that I haven't been able to read the VIX with any certainty lately. Even with todays late session rally, I still think that we've got more to go on the downside going forward. Option premiums are high since we just rolled into the October cycle. The volatility is adding premium as well. Gold did break the $1900 level today but then came back. That's the line in the sand. The GDX calls could be the next trade but it really needs close attention because there's a chance that things fall apart here for the metals. Perhaps the overall market as well but tomorrow will most likely tell us about that. Asia was lower and Europe had a very negative day. We'll keep an eye on the overnight developments.

We closed the week on a down note as the Dow fell 244 points on expiration very heavy volume. The advance/declines were 2 to 1 negative. The summation index is now trending lower. The overall market was once again weaker than the Dow. The Dow was off 400 during the session but the market made a comeback in the final hour and a half. It appears that the stock indices are trying to hold on here and not allow the bearish flag formation on the daily charts to trigger. I don't think that they'll be successful. Looking back on yesterdays SPY trade, holding on another day would have increased the profit but I simply didn't want to take the risk. In retrospect all trades could be better or worse. The important thing to remember is whether it's a profit or a loss you've got to let go and move on. Where we go from here is what matters and I think we're going lower. GE was off over 1/8 on good volume. Gold gained five bucks on the futures as the US dollar finished little changed. The XAU fell 2 1/2, while GDX lost 3/4. Volume remains light here as the gold shares followed the overall market lower. The GDX October calls are on my radar now. If the overall market continues to drop, it should take the gold shares with it and that may provide the opportunity to try the calls. That's the best case scenario for now in my view. Mentally I'm feeling OK. The VIX was lower today with the market decline. This indicator has been giving a lot of conflicting signs lately. It's still holding above the 50 day moving average on the daily chart. The daily chart for the S&P 500 shows the technical indicators oversold on a short term basis. The weekly chart still has room to go lower on the technicals. We're rolling into the October option cycle on Monday. I still think that the S&P will make it down to the 3200 level over the next couple of weeks or sooner. If we somehow got a rally from here back to the top of the flag at the 3425 level I'd be willing to give the puts another shot. But I don't think that's going to happen. I wouldn't be surprised if we just head lower next week. We'll see what the market has in store for us. Option premiums are elevated with the move to the next trading month and the recent volatility. So there isn't exactly a rush to do anything here for now. I'll go over the charts again this weekend and see what I can find. Asia was generally higher and Europe lower overnight. It's Friday afternoon and time for a rest.

Lower today as the Dow lost 130 points on good volume. The advance/declines were negative. The Dow was off over 350 at one point today. The summation index is still in a sideways range. We had a huge gap down on the open today but the indexes managed to hold support for now. The overall market was weaker than the Dow again with the NASDAQ leading the way lower. I sold my SPY September puts early on and reaped a gain of just over 300%. The exit could have been a bit better but it was a good trade nonetheless. Doesn't matter now though as you must always keep moving forward in the game. Expiration Friday tomorrow and I won't be attempting anything there. I sitll think that we're heading lower from here. GE continued to move higher as it gained 1/3 on extremely heavy volume again. Gold lost some ground, the futures there were off a dozen. The US dollar was lower as well. The XAU dropped 2 points, while GDX shed 3/4. Volume here remains light. I am still looking at the GDX October calls and that may be the next trade in line for me. Not close to short term oversold there but GDX is holding its 50 day moving average. Mentally I'm feeling OK. The VIX spiked up early on the gap down in stocks. However it eroded those gains during the session and finished with just a small move higher. Still oversold on some of the short term indicators for the VIX. The market had a chance to fall apart today but it didn't. The question is whether the lows of the bear flag will hold as they did today or was this just something option expiration related? My guess is the latter, as I believe that were going to head down to at least 3200 on the S&P 500 before this decline is over. I could be wrong and often am. Europe and Asia were both lower overnight. We'll see how expiration Friday goes tomorrow.

An interesting session as usual when it comes to the Fed announcement days. The Dow managed a gain of 36 points on pretty good volume. The Dow was up well over 300 at one point. The advance/declines were positive. The summation index is moving sideways and trying to turn back up. The NASDAQ was lower on the day along with the S&P. The market rallied after the Fed but then fell apart during the last hour. Volume picked up on the decline and with the NASDAQ leading the way it isn't exactly bullish. Retail sales were a bit lighter than expected. My open order for the SPY September puts was filled as the S&P 500 reached the target of 3245. It actually moved past that level and I probably could have done better on the entry. The position is showing a profit but of course that could get wiped out fast with only two days to go. For now the bearish flag formation appears to be intact on the S&P but things obviously could go either way from here. I don't think that I'll hold this position until Friday and with any luck I should dump it tomorrow with a profit. We'll have to see how things go overnight. GE exploded 2/3 to the upside on extremely heavy volume. The company reported some good news about cash flow. Gold was up about $5 on the futures as the US dollar finished a bit higher. The XAU and GDX had slight fractional moves one way or the other on light volume. The Fed did not affect gold this time around. Mentally I'm feeling OK. The VIX was only up slightly despite the volatility as it continues to hover around its 50 day moving average. With only two days left in the September option cycle, the risk in my SPY put position is as about as high as things get. I'll try to remind myself to stay nimble but when the markets are moving that isn't always a consideration. If the bearish flag formation on the S&P is valid we'll be heading down a lot lower. However I sincerely doubt that will happen within the next two days. Todays price action was certainly negative but anything can happen with just two days to go for the September options. The very short term trading is not one of my strong points but this trade may prove to be the exception. I'll see how things open tomorrow and take it from there. Europe was higher, with Asia generally up with the exception of China and Hong Kong. We'll see what tomorrow brings.

An early rally faded but the Dow did manage to eek out a two point gain on average volume. The advance/declines were positive. The summation index is turning sideways. The overall market was much stronger than the Dow with the NASDAQ leading the way again. I did place an open order for some SPY September puts last night but it wasn't filled. The S&P 500 did make it up almost to 3420 before backing off. I'm looking for 3425 but that was pretty close today. I canceled the order from last night and moved up a strike price with the next order that I'm leaving out there. We'll get the Fed tomorrow and that should increase the volatility. This trade is a risky proposition and if it doesn't get filled tomorrow I'll most likely head for the sidelines. Retail sales will be reported before the bell and we'll take it from there. GE was off a nickel on average volume. Gold was off a few bucks on the futures as it dropped back from the highs of the session. The US dollar finished little changed. The XAU and GDX were little changed as well on light volume. I'll be looking for the GDX October calls if we get back to short term oversold on the gold shares. Mentally I'm feeling OK. The VIX was down a touch and is hanging around its 50 day moving average. The short term technical indicators here are oversold but not completely. However if the 50 day average holds, we should see the VIX rise and stock prices fall. Hasn't happened yet and if the 50 day doesn't hold the VIX will continue to drop and the recent rally will have legs. Trying to time the short term swings is extremely difficult and especially during options expiration week. The profits will come quick but the losses will be even faster. Time decay speeds up and isn't your friend in either direction. I still think that we're in a bear flag for the S&P and if we somehow reach the top of it tomorrow, I'll probably cancel my open order and just buy some SPY puts. That's the idea for now subject to change as always. Asia was mixed and Europe higher overnight. All eyes and ears on the Fed tomorrow.

Expiration week started to the upside as the Dow gained 327 points on average volume. The advance/declines were a little over 4 to 1 positive. The summation index is still moving lower but is trying to turn around here. Whether or not it does will have a lot to do with where we're going near term. The overall market was stronger than the Dow and the NASDAQ led the way. That is a plus for the long side here. Only four days to go in the September option cycle. High risk trading now but I do have an idea. If the S&P can make it up to the 3425 level, I'll try the SPY September puts. I'm going on the assumption that a bearish flag formation has occurred since the recent drop and that 3425 is the top of that flag. We'd have to get to that level in the next two sessions for me to try this idea. There's also a chance that we've finished the mild correction for stocks here and will now go back to test the recent all time highs. Time will tell on that. GE was up twenty cents on lighter volume. Gold added almost twenty bucks on the futures as the US dollar was lower. The XAU climbed 6 points, while GDX rose almost 1 2/3. Volume was light. I've missed the GDX September call trade but will look to try the October call options if we get back to oversold. Mentally I'm feeling OK. The VIX was lower and made it back to the 50 day moving average. This is the logical spot to try the index puts although the short term technical indicators are not yet completely oversold. I've set my targets as to where to try the SPY puts this week. We either get there by sometime on or before Wednesday or we don't. Another day like today would do it but the market will do what it wants. It's a risky idea to be sure but if the underlying prognosis is correct, it will work. We've got the Fed on Wednesday and it's possible that we'll be in a holding pattern until then. The pandemic virus continues. Some economic data due out this week including retail sales on Wednesday. Asia was higher and Europe mixed in last nights trade. We'll see how things go tomorrow.

A day of indecision for the market as the Dow gained 131 points on average volume. The advance/declines were slightly negative. the summation index is moving lower. A mixed bag today as the NASDAQ was down. The market was up and down during the session as neither the bulls or the bears could take hold. The S&P 500 continues to hold its 50 day moving average and that is a plus. Option expiration week is on tap and that usually has a bullish bias. But we really don't know for sure which way it's going to go. Even if we rally on Monday there's a chance that a bearish flag is being formed before we take out the recent lows. That's just a guess on my part as it hasn't happened yet but the NASDAQ is leading the way and it remains negative. GE was off a nickel on average volume. The gold futures were off $5. The US dollar finished little changed. The XAU fell two points, while GDX lost 3/8. Volume was light. With just a week to go I'm still considering the GDX September calls but the risk would be pretty high. Especially if the market decides to continue its fall. I'm also looking out to the October calls here. I suppose that I'll look things over this weekend and take it from there. Mentally I'm feeling a bit tired. The VIX was down today even though prices didn't finish with decent gains. Getting close now to the 50 day moving average. The short term indicators have rolled over, are moving down but aren't yet oversold. The weekly chart here appears bullish but that could change. Expiration week complicates things but there should be a decent trade out there if I can find it. The option premiums do remain pretty high though. This week will suck out lots of built in time premium as well. So the timing of any trade will have to be spot on because time will not be on your side. I'll go over all the charts this weekend as usual. Hopefully I'll come up with something. Europe and Asia were mixed to finish the week. It's Friday afternoon and time for a break.

Back to the downside as the Dow fell 405 points on good volume. The advance/declines were around 2 to 1 negative. The summation index is moving lower. Once again the NASDAQ led the way down and that is not a good sign it you're bullish. Many of the stock indices are right above their 50 day moving averages. Tomorrow will be pretty important if things don't hold in here. I do think that we're heading lower but would like a chance to get some SPY September puts. It doesn't look like I'll get that chance though. We are oversold on some of the short term indicators but in extended declines we simply stay that way. GE was off over 1/8 and the volume was good. Gold was off a few bucks and fell back from the highs of the session. The US dollar was slightly higher. The XAU dropped 2 1/2, while GDX shed over 3/4. Volume was light. I'm still looking at the GDX calls as the next trade. Not exactly sure which way to go now because if the market takes a big drop, the gold shares will probably go with it. The short term technical signals are not clearly in a buy or sell mode either. However the Bollinger bands are very tight so you can be sure we are about to see some type of decent price movement in the GDX very soon. I would like to be on the right side of whatever occurs. Mentally I'm feeling OK. The VIX was slightly higher today and is above the 200 day moving average. At this rate is doesn't look like we'll make it down to the 50 day. If that's the case expect a decline for stocks in the coming days. But we're just guessing what will happen at this stage in my view. The market will show us the way and I think tomorrow will go a long way as to what to expect here. A down session will put us at new lows for the move and make it two weeks in a row of selling. An up session will give the bulls hope that the recent sell off is just a consolidation instead of an extended decline. My thinking remains that we're heading lower, if not tomorrow then as we move along in time. Asia was generally higher and Europe lower overnight. We'll complete the shortened trading week tomorrow.

Got a bounce today as the Dow gained 439 points on average volume. The advance/declines were 3 to 1 positive. The summation index is still heading down. The overall market was stronger than the Dow and that's a plus for the bulls. However questions remain as the market did sell off in the final half hour. Has the decline ended and now it's back to rally mode? I don't think so but the market does go where it wants. Any trade from here on out in the September option cycle will be tricky. Obviously with the elevated volatility things can go right or wrong in a hurry. Nimble would be the word to describe how you have to trade things from here. I still favor the put side of things for now but I could be wrong. We will get some economic data in the next couple of sessions including inflation numbers. But I think that the market will be influenced more by its own price movement versus any data coming out. GE was up a couple cents on heavy volume. Gold rose around $20 on the futures as the US dollar was lower. The XAU climbed 6 3/4, while GDX added 1 3/4. Volume was about average. My GDX call order wasn't filled and this is another opportunity missed for now. I'm inclined to chase this move higher in the gold shares though. The contracting Bollinger bands here mean that the rally here has room to grow. The outperformance of the gold shares versus gold is another indicator of a plus for the long side now. I'll be keeping an eye on the October GDX calls. Septembers may be a little too risky now considering that GDX has already gained over 2 1/2 points from the low yesterday morning. Mentally I'm feeling OK. The VIX moved lower today with the rise in prices and that makes sense for a change. The short term technical indicators have now rolled over for the VIX. My trading idea here is to purchase some SPY September puts when the VIX gets back to its 50 day moving average. It's plenty risky though as it would take longer for the other indicators to give clear signals. There's also a possibility that the decline has been quick and already run its course. I don't think so but we have to consider the possibility. So the trading is never easy. I'll look things over again tonight and take it from there. Asia was lower and Europe higher in last nights trade. We'll see what tomorrow brings.

The sell off continues as the Dow fell 632 points on heavy volume. The advance/declines were around 4 to 1 negative. The summation index is moving lower. The overall market was weaker than the Dow, with the NASDAQ leading the way down. I am looking and hoping for some kind of near term bounce in order to try the SPY September puts but it appears that opportunity has passed. Getting short term oversold but not completely there yet. The 50 day moving average at 3300 on the S&P should provide some near term support. If not, 3200 looks like the next level. It has been quite a drop in just three days so I suspect that some buying should come in soon. Tech led the way up and it's leading the way down. GE lost over 1/4 on heavy volume. Gold was up a few bucks and came off of the lows for the session. The US dollar was higher as I think we're beginning to see a flight to safety. The XAU lost 1 1/2, while GDX shed around 1/4. Volume was light. I did place an open order for some GDX September calls and I'm leaving it out there. Only eight days left in the September option cycle, so this is a risky venture. We'll see if it gets filled and take it from there. GDX isn't yet completely short term oversold but we did almost hit the lower Bollinger band today. The contracting bands also imply something big brewing and my guess for now is that it will be to the upside. Mentally I'm feeling OK. The VIX was only up a little today despite the huge decline in the indexes. Once again this indicator is not acting the way it normally does. More overbought than oversold here but that doesn't mean that stocks can't go lower from here. They probably will as we haven't seen any buyers step up to the plate despite the recent losses. The NASDAQ has lost around 10% in a hurry. The overall nature of the market has gone from buying any decline to simply selling in a matter of days. The weekly stock index charts have plenty of room to move lower. The summation index is moving down. So we are just going to have to wait and see what transpires as we go through the month of September. I'm willing to try the gold shares here but if this trade doesn't work out I'm just as willing to move out to the October option cycle as well. GLD is short term oversold here and SLV is getting there as well. Throw in a stock market decline and we should start to see buyers in this area going forward. That's my best guess at the moment. Asia was higher and Europe lower overnight. We'll see how things go tomorrow.

A down day to end the week but it wasn't as bad as it could have been.  We did have a sharp sell off early on but the market fought back and the Dow finished with a loss of 159 points on good volume.  The advance/declines were negative.  The summation index is heading lower.  The Dow was off over 600 early on.  Quite a week to start the month of September and there will probably be some more surprises along the way.  The jobs report was a bit better than expected but it took a back seat to the overall stock market action.  At least we now know the game has changed and I'll be looking to play the short side on the SPY trades near term.  Volatility has elevated and it probably won't settle down immediately.  I'll check things out this long weekend and go from there.  GE was up a dime on good volume.  The gold futures were slightly higher and the US dollar finished little changed.  The XAU was off 1 1/3, while GDX was down 3/8.  Volume was average.  Once again the gold shares sold off and then came back to form another hammer on the daily candlestick chart today.  I did place an order for the GDX September calls but it wasn't filled.  Not oversold yet on a short term basis for the gold shares.  Only nine days left in the September option cycle.  My concern here is that the gold shares move sideways as they have been.  That would not help taking a trade on here either way.  We didn't see a flight to gold with the decline and that's a cause for concern as well for the long side.  I may have to go out to the October option cycle for this idea.  I'll know more after this weekend s research.  Mentally I'm feeling a bit out of sorts.  Can't put my finger on it but probably has to do with missing the SPY September put idea.  Although I do think that one still has a chance to work again depending on market price action.  The VIX had a burst up but then turned around and closed lower on the session.  The short term indicators here have now rolled over.  Could mean a short term end of the decline.  But it does appear that some damage has been done to the technical picture on some of the stock index charts.  We'll see if the market can regroup next week.  I'll be checking the charts over the weekend to come up with a strategy for next week.  Europe and Asia were lower to finish the trading week overseas.  It's Friday afternoon and time for a break.

What goes up must come down as they say.  The Dow got clobbered today and fell 807 points on heavy volume.  The advance/declines were better than 4 to 1 negative.  The summation index is now moving lower.  The NASDAQ lost 5% in a day.  It had been moving straight up and that cannot last indefinitely as todays proved once again.  None of my SPY September put orders got filled in the past couple of days so it was another missed opportunity for me.  In hindsight, yesterday was a speculative blow off to the upside.  Now the question is how low can we go?  There is support for the S&P at 3400 to start.  If that doesn't hold there's the 50 day moving average at around 3300.  There's also solid support in my view at 3200-3250.  Only time will tell which level stops the decline.  Could today just be a one day wonder?  Anything is possible in this game but I do think that we're headed lower from here.  GE was only off 1/8 and the volume was good.  Gold dropped ten bucks and the US dollar was a bit lower as well.  The XAU was down 1 1/2, while GDX shed 3/8.  Volume was light.  GDX is holding above its 50 day moving average but isn't short term oversold yet.  That said, I'll probably be putting in an order for the September calls here overnight.  The Bollinger bands for GDX are contracting which implies a big move ahead and the daily candlestick chart shows a couple of hammers in the past two sessions.  Of course things could change tomorrow but for now I'm looking at the calls.  We may also see a flight to safety on the markets huge drop.  Mentally I'm feeling OK.  The VIX took off and reached above the 35 level today.  Overbought and still there on the short term indicators here.  That implies more volatility down the road.  I'm not sure just how crazy things will get but if today is an example then be prepared for anything.  I'm looking for lower stock prices going forward.  However there's also a possibility that we see a sideways market for a while as the overbought technical conditions get worn off.  There is plenty of room on the technical indicators for the major averages to move lower.  Whether or not price joins them is what we'll find out.  I think that price will but I am wrong quite often as well.  For now I'll be back to keeping an eye on the GDX calls and hope to purchase some soon.  I also cannot rule out the SPY October puts if we get a short term overbought signal again.  Asia was generally higher and Europe lower last night.  We'll get the jobs report tomorrow ahead of a holiday weekend.  Should be interesting.

It's quite a ride to the upside as the Dow gained 454 points on heavier volume.  The advance/declines were about 2 to 1 positive.  This should put the summation index sideways.  We are as overbought as it ever gets here.  But you can't fight the tape.  No sellers around but we're at extremes.  I canceled my open order for the SPY September puts but moved to a higher strike price and put another order in.  The S&P 500 is moving straight up but the put options are not losing their value in the same progression.  I can't remember when I've seen such crazy option pricing.  However the market always knows more than we do.  I also know that when things start going straight up, they usually come straight back down.  The question is when?  GE was up 1/4 on good volume.  Gold fell as the US dollar rose.  The precious metal futures were off $25.  The XAU and GDX were little changed on the session and finished well off of their lows.  Volume was light.  The gold shares benefited from the overall bullish tone for stocks today.  Mentally I'm feeling OK.  The VIX was up today despite a huge rally in the market.  It remains short term overbought and I certainly cannot figure out what is going on here.  The VIX did correctly predict a big move coming for stocks and it was to the upside.  I'm now at a loss as to how to figure out what the recent chart action means here.  I suppose a lower VIX would go along with higher stock prices but now the VIX is rising with higher stock prices.  I'll keep an eye on it but won't use it to time anything here.  My thinking is that the Dow will be hitting new a time highs soon, following the NASDAQ and the S&P 500.  Should I wait until that happens to try the SPY September puts?  That's what I'm considering at the moment.  The only thing that I know for sure right now is that the market is out of control.  It usually occurs to the downside and I am more used to that.  How far can we go up?  Longer than you can stay solvent is the general consensus.  I also still have my eye on the GDX calls if we get back down to oversold there.  My guess is that once this burst to the upside has ended I'll get the chance at the GDX calls.  We'll see.  For now I'll reconsider this SPY put idea again tonight when I go over all the charts.  Europe and Asia were up overnight as the worldwide flow of funds continues.  We'll see what tomorrow brings.

The climb higher continues as the Dow added 215 points on good volume.  The advance/declines were positive.  The summation index is still moving lower.  The overall market fared better than the Dow with the NASDAQ up over 150 points.  The rally is relentless as the short term overbought condition remains.  I've still got my open order for the SPY September puts out there.  But at the rate things are going this looks to be the wrong idea.  I am noticing that the puts are not losing as much value on the gains in the market now.  Not sure what that means.  Record highs for some indices on a daily basis.  GE dropped over 1/8 and the volume was pretty good.  Gold finished the day little changed.  The US dollar was a bit higher.  The XAU fell 1 3/4, while GDX shed over 1/2.  Volume was light.  I still like the GDX calls on a trip back to oversold.  Mentally I'm feeling OK.  The VIX was just a bit lower as it hangs around its 50 day moving average.  The contracting Bollinger bands here sparked a rise in the VIX but without the corresponding drop in equity prices.  Again, I don't exactly now what the implications of that are.  But I will say that when things start to simply go up in a straight line, as they are for the NASDAQ, it usually doesn't end well.  We saw this recently with the price of gold.  Now the decline may not last long but it is generally sharp and quick.  However trying to guess when this will happen has led more traders to losses than gains in my opinion.  That doesn't mean that we won't try though.  Usually when the equity prices move and the options don't move with them, it's because players are willing to pay up to be on the opposite side.  In general that side usually knows what it's doing.  The market goes where it wants though and there is nothing in the way of higher prices yet to come.  I'll reconsider leaving out the SPY put order that I have tonight.  Europe and Asia were mixed overnight.  We'll keep an eye on the overnight headlines.