Down we go as the decline continues. The Dow fell 450 points on expiration heavy volume. The advance/declines were around 4 to 1 negative. The summation index is heading lower and we are falling apart approaching the zero line. It doesn't appear that it will hold things up this time around. The NASDAQ is still leading the way lower and that's a negative. The S&P 500 is short term oversold, staying that way and just closed below its 200 day moving average. We should have at least seen a bounce at some point this week but it didn't happen. Getting ugly and even if we see a bounce it probably won't hold. Rolling now into the February option cycle. Gold fell over ten bucks today. The US dollar was a bit lower and interest rates fell on a flight to safety. The XAU dropped almost 4 points, while GDX shed 2/3. Volume was good to the downside. My open order for the GDX February calls was filled and it's already a loser. Plenty of time for this trade but with the market in what looks to be freefall, the gold shares are going along for the ride. The stop loss order is in though and another day like today will get me out. Perhaps staying on the sidelines for now is the proper course of conduct. But we'll see. Mentally I'm feeling OK. The VIX was up and is almost at 30. Remaining short term overbought on the indicators. Usually the VIX doesn't stay overbought for long but it seems right now is not a usual time. Buyers have vanished. We've got the Fed next week and perhaps they'll calm the markets. Or not. Going through the zero line on the summation index to the downside is a rare event but always interesting to say the least. We're getting close to being down 10% for the S&P and perhaps that will put a temporary hold on the selling. But that's just a guess. The trend is down. Plenty to ponder over the weekend to try and figure out what to do next week. Europe and Asia sank overnight. It's Friday afternoon and time for a break.

The market tried to bounce today and was up over 400 points in the morning. But the rally didn't hold and we fell apart in the final couple of hours. The Dow fell 313 points on good volume. The advance/declines were 3 to 1 negative. The summation index is moving lower. The NASDAQ led the way down and that continues to be a negative. The S&P 500 is short term oversold and staying there. The next support is the 200 day moving average at around 4425. More concerning is the summation index moving lower and heading towards the zero line again. The zero line has held up recently but that won't happen every time. If we fall through there things will get ugly in a hurry and the market will simply fall apart. The way it is acting seems to be saying that will be the case. Oversold and staying there is a recipe for disastor. We'll see. Gold was off just a few bucks on the futures. The US dollar was higher and interest rates were steady. The XAU lost 2 1/2, while GDX was down almost 1/2. Volume was good. My order is still out there for the GDX February calls. The problem here is that if the market collapses it will take the gold shares with it. I'll have to reassess this idea tonight. I do still think that the flight to safety trade holds water. Mentally I'm feeling OK. The VIX was lower early but then shot up past 25 to close the day. Short term overbought here and that condition usually doesn't last long for the VIX. Unfortuantely the way the market is acting at the moment isn't the usual conventional way. Sellers are overwhelming the buyers. The tone has changed and we have to change with it. Expiration Friday and what happens is up in the air. Interesting times. The small shares have broken down and it appears that the rest of the market is on its way. Europe and Asia were higher in last nights trade. We'll see how expiration Friday goes.

Continuing lower as the Dow tried to hold on today only to drop by 339 points on average volume. The advance/declines were better than 2 to 1 negative. The summation index is moving lower. We did see some buying today but in the final hour sellers arrived and took control. The NASDAQ still remains the downside leader. The S&P 500 is now short term oversold. I'd expect at least some kind of bounce before the end of the week. However with the summation index moving down the path of least resistance is lower. Rallies can be sold as the easy money is in the process of being removed. Unfortunately the odds now increase that things will get ugly. Hopefully we'll get a chance at the SPY February puts in the weeks to come. Gold took off to the upside today as the safe haven play is back. The gold futures jumped $30. Bot the US dollar and interest rates were a bit lower. The gold shares exploded to the upside. The XAU gained 9 1/3, while GDX rose 2 1/4. Volume was very heavy which confirms that this move is for real. I canceled the open order that I had for the GDX February calls and replaced it with another one in hopes of eventually getting filled. GDX is short term overbought but I believe this is a move worth chasing. I am definately late though. I do think that trying the February calls here is worth the risk. The markets are in the process of change and I think that gold will stand to benefit at least in the short term. Mentally I'm feeling OK. The VIX moved higher and is short term overbought. It usually doesn't stay that way for long so I'm expecting some kind of upside for the market before the end of this week. Not the beginning of a rally mind you, just something to relieve the selling pressure. Make no mistake, the trend is now down until further notice. Europe had a slight gain and Asia was lower overnight. We'll keep an eye on the evenings developments.

A decidedly down day to start the week as the Dow fell 543 points on good volume. The advance/declines were almost 6 to 1 negative. The summation index is now moving lower. The NASDAQ again led the way south and that is not a good sign. The S&P 500 has just moved into short term oversold territory. The market is adjusting to the fact that there will be less liquidity. In other words there won't be as much money sloshing around to chase stocks. How long the selling lasts is anyones guess but the weekly indicators are not yet oversold. Gold was off a few bucks on the futures but held up rather well despite the negative backdrop. The US dollar was higher along with interest rates. The XAU was off about 1 1/2, while GDX shed 1/3. Volume was light as it has been to the downside in the past 3 days here. I did place an open order for the GDX February calls although GDX is not yet short term oversold. Silver had an impressive day to the upside and gold did not drop much as it appears the safe haven factor may be coming into play. It will take more of a drop in GDX to get this order filled. Mentally I'm feeling OK. The VIX jumped above the 20 level today and the indicators are heading north. We are touching the upper Bollinger band here so perhaps things will turn around tomorrow. Or not. Support for many of the smaller stock indexes has been broken, with a trip to the 200 day moving averages in range. It is expiration week though and I would expect to see buying at some point. But it appears that the tide has turned for equities and rallies will be sold. Europe and Asia were down with the exception of China. We'll see how things go tomorrow.

A mixed bag for sure today as the Dow fell 202 points to close out the week. The advance/declines were negative. The summation index is still drifting higher. The Dow did come up from the lows of the session as it was down 450 at one stage of the day. Retail sales were weaker than expected and that was one excuse for the decline. The NASDAQ and the S&P 500 posted gains for the day. The S&P had a one day reversal to the upside as it opened lower and closed higher. It is doing its best to try and hang on here but it's now down below the 50 day moving average. We also have tops beneath tops on the daily chart here which has a down trend line in place. Perhaps if we make it back to that line we can try the SPY puts. Or maybe the line will be taken out and we'll head for new all time highs. I'm more of a believer of the former. Gold was off 5 bucks today. The US dollar was higher along with interest rates. None of that fits with a weaker retail sales numbers but the market goes where it wants. The XAU lost 1 1/2, while GDX shed 1/4. Volume was light again to the downside. I am trying to remain patient here but I would certainly like to try the GDX February calls. Mentally I'm feeling OK. The VIX reversed back lower today and closed below the 50 day moving average. The short term indicators are mid-range. Not getting a good idea of what this indicator is trying to tell us now. Maybe we'll see the usual expiration week upside bias coming up. I certainly don't know and will remain on the sidelines most likely. It's a long holiday weekend on tap with plenty of work to do regarding what's going on here. I'll be going over the charts as usual to try and come up with some kind of game plan going forward. Europe and Asia were lower to close out the week. It's Friday afternoon and time for a break.

It appears that the bounce is complete as the Dow fell 176 points on about average volume. The advance/declines were negative but not as much as a down 176 market would suggest. The summation index is drifting higher. The overall market was much weaker than the Dow with the NASDAQ leading the way lower. That's not a positive. It looks like the S&P 500 is on its way to test last weeks lows as most of the short term technical indicators have rolled over. It is probably too late to buy the SPY January puts. Could things turn around tomorrow? It's possible but we'll need some kind of excuse to be buyers ahead of the long weekend. Gold dropped five bucks but did come up from its lows. The US dollar was a bit lower as were interest rates. The XAU fell 1 7/8, while GDX shed 1/2. Volume was light. I'm back to looking at the GDX February calls but in no hurry. The Bollinger bands are starting to contract in the precious metals complex, implying that a big move is on the way. Which way is the question but I'm leaning to the long side. Mentally I'm feeling OK. The VIX spiked higher and closed above its 50 and 200 day averages. It also finished above the 20 level. The short term indicators have turned up with room to go higher. This indicator is now saying volatilty is on the rise and prices are in decline. It fit the bill today. With only 5 days left in the January option cycle, the risk is high to take on a SPY trade. I'm pretty sure that I'll let tomorrow pass and take it from there. That seems to be the prudent path for me at the moment. Europe and Asia were mixed overnight. We'll finish up the trading week tomorrow.

The market continues to trudge higher as the Dow gained 38 points on light volume. The advance/declines were slightly positive. The summation index is turning back up. The inflation data came in high as expected but did not cause any widespread selling. If we stay higher into Friday, I may try the SPY January puts. However the short term technical indicators for the S&P are mid-range. So that may not be the best idea. But if we do make it back to short term overbought on one of my indicators I'll probably do the trade. Gold continued higher today as the futures rose eight bucks. The US dollar dropped and interest rates were steady. The XAU gained 2 2/3, while GDX added over 1/2. Volume was average again. I canceled my open order for the GDX February calls as this trade was missed. The sharp rise in the gold shares this week makes me believe that this move up is for real. I'll be looking to attempt the GDX calls on any weakness but the ideal time to try this trade has passed. I was early on my attempt here with the last losing GDX trade. Mentally I'm feeling OK. The VIX was lower, remains short term oversold but not extremely so. Not really getting a good signal one way or the other from here. My thinking is that the 3 day rally that we've seen in stocks could stall here. We'll get more inflation data out tomorrow and retail sales on Friday. We also have a holiday weekend comng up in the US. I'll remain on the sidelines for now and wait to see how we go for the rest of the week. Europe and Asia were higher overnight. We'll see what tomorrow brings.

Bouncing higher today as the Dow gained 183 points on lighter volume. The advance/declines were better than 2 to 1 positive. The summation index is trying to turn back up. The NASDAQ led the way higher today and that's a plus. The short term technical indicators for the S&P 500 are turning back up. Are we heading to new all time highs again? Perhaps but I'm in a wait and see mode for now. We'll get inflation data out tomorrow and the market reaction to that will tell us a lot. Gold rallied today as the futures were up $20. The US dollar along with interest rates went down. The XAU was up 1 2/3, while GDX gained almost 2/3. Volume was average. It appears that I've missed the uptrend here for the gold shares as the indicators have turned around and are heading higher. My order for the February calls is still out there but I'll probably end up canceling it. Might try the January calls again for a short term trade if we get a near term pullback. I'm not a fan of missing moves but what can you do? Mentally I'm feeling OK. The VIX was lower and it looks like it has room to go lower. It isn't short term oversold yet. If the market rallies tomorrow despite higher inflation and the VIX continues to go down I'll have to change my market outlook. It is never easy trying to interpret exactly what is going to happen. Running out of time in the January option cycle. Perhaps the sidelines remains the place to be for now. Europe was higher and Asia generally lower in last nights trade. We'll keep an eye on the overnight developments.

Coming back from the brink today as the Dow fell 163 points on average volume. The advance/declines were around 2 to 1 negative. The summation index is tracking sideways. Off almost 600 points early on the markets made steady progress to the upside for the rest of the session. The NASDAQ was off 400 and made it back to positive territory. It appears that a temporary bottom has been put in place today. The market needs a break from the selling and we should see that at least for the beginning of this week. Inflation data due out on Wednesday and Thursday. Gold was up a few bucks today. The US dollar was slightly higher while interest rates were steady. The XAU was up 2 points, while GDX gained 1/2. Volume was average. I did place an open order for some GDX February calls but it will take a drop to 29 to get the order filled. That may not occur as it appears that the gold shares are ready to reverse right here. But we'll see how the rest of the week plays out. Mentally I'm feeling OK. The VIX had a spike up only to reverse and finish the day below the important level of 20. That's another reason why it isn't out the question to see the market stage some kind of rally from here. The NASDAQ held its 200 day moving average and the Russell 2000 held its long term support. So it appears that at least a temporay bottom is in place. I'm looking for some kind of bounce and it looks like it started today. I'm expecting higher prices tomorrow. The McClellan oscillator gave a signal for a big move on Friday and today probably fills the bill although it doesn't look that way on a closing basis. Volatility has picked up. Asia was generally higher and Europe lower to begin the week. We'll see what happens tomorrow.

The selling continues but the Dow only lost 4 points on average volume. The advance/declines were slightly positive. The summation index is moving sideways. Once again the NASDAQ led the way lower and that is a negative. The payroll numbers were mixed with job creation coming in lower than expected. The S&P 500 still managed to close above its 50 day moving average. I'm expecting some kind of bounce here in the next day or two. Whether or not it turns into the next leg up remains to be seen. The short term indicators here are now mid-range. Gold was up five bucks on the futures. The US dollar was lower and interest rates continued their climb. The XAU gained a point, while GDX added 1/4. Volume was average. GDX is still not completely oversold. If it drops another point to 29, I'll try the February calls there. Mentally I'm feeling OK. The VIX was back down today despite the drop in prices. Not exactly sure what that means. The short term indicators are rolling back over. Perhaps we are setting up for the bounce and then we'll see what happens. The NASDAQ is at its near term support and is getting short term oversold. Other stock indices have held up better but the NASDAQ is generally the leader both up and down. If it would continue to drop from here it would spell trouble. We also are not seeing the usual beginning of the year rally. It's a time for caution in my view as the weak beginning to the new year along with the rise in interest rates are not positive events. We'll be going over the charts as usual this weekend to try and develop some type of game plan for the remaining January option cycle. There will be less than 2 weeks remaining due to a holiday on the 17th. Europe was generally lower with Asia mixed to close out the week. It's Friday afternoon and time for a break.

The Dow led the way lower today as it dropped 171 points on average volume. The advance/declines were positive though. The summation index is starting to move sideways. The overall market did not drop as much as the Dow. The S&P 500 held up at its 50 day moving average. The short term indicators still have room to fall but they could just as easily turn around after todays price action. We'll see how things react to the jobs report and take it from there. The gold futures lost another $10 today. Rates were steady and the US dollar was slightly higher. The XAU fell 4 1/4, while GDX lost over a point. Volume was good to the downside. The short term indicators here are on their way to becoming oversold. Mentally I'm feeling OK. The VIX was a bit lower today and remains below the 20 level. I get the feeling that things could go either way with the VIX from here. The fact that the market did not sell off again today makes me think that tomorrow could be a positive session for stocks. However I do not have a decent signal to trade the SPY options so I will therefore be sitting things out for now. Still a couple of weeks to go in the January option cycle. Europe and Asia were lower overnight. All eyes on the employment report tomorrow to finish off the first week of the new year.

A bout of selling today as the market did not like the tone from the Fed minutes. We had a nasty sell off with two hours to go today as the Dow fell 392 points on heavy volume. The advance/declines were better than 4 to 1 negative. The NASDAQ got clobbered by over 3% and led the way lower. I had expected prices to continue to rise and that scenario is now in question. The short term indicators for the S&P 500 have now rolled over and imply that there is more selling to go. We just hit a new all time high so I don't think a protracted decline is on tap but what do I know? We'll see if we get any follow through the rest of the week or if this is just a one day wonder. Gold was up early but gave back all the gains and finished about $5 lower on the session. The US dollar was slightly lower but interest rates continued to rise. The XAU fell 2 1/2, while GDX shed 1/2. Volume picked up to the downside. The short term indicators for GDX have now rolled over as well. I sold my position in the January GDX calls for a 90% loss. This trade was a loser from the beginning and should have been sold long ago. I also threw good money after bad and that is a cardinal sin in trading. I got what I deserved I suppose but it isn't how I wanted to start the new year. However like any other trade, win or lose it doesn't matter now and you have to move on. If GDX gets back below 29 I might try the calls again. Mentally I'm feeling a bit disappointed as losing trades do nothing to help in the confidence department. Moving forward is what's up next. The VIX climbed today with the rout and that makes perfect sense. This indicator had been extremely oversold for so long there was only one way to go but you could not tell when it would occur. The indicators here have now turned back up with plenty of room to go. The VIX closed above both its 50 and 200 day moving averages. Didn't close above 20 though but another day like to day will do it. I suppose I'll wait for the reaction to Fridays jobs report and take it from there. We'll see if we get any overseas selling tonight. Europe was higher and Asia mixed in last nights trade. We'll see how things go tomorrow.

It was a mixed bag today on Wall street but the Dow managed to continue to climb. The most watched index added 214 points on good volume. The advance/declines were slightly positive. The summation index continues higher. The S&P 500 finished almost unchanged, remaining short term overbought. The NASDAQ fell over 200 points. it wasn't the broad based rally that I was expecting to begin the new year. Not sure what to expect from here but the rest of the week should be interesting. Jobs report due out on Friday. Gold bounced back as the futures were up $15. The US dollar was higher along with interest rates. The XAU and GDX had fractional gains on light volume. The gold shares remain short term overbought and the slight increase today despite a decent gain in gold itself is a negative. I should have sold the GDX January calls that I still hold a long time ago. It may be preventing me from moving on to the next trade with my focus on it. Mentally I'm feeling OK. The VIX was only slightly higher today and remains extremely oversold. Not getting any signal one way or the other from here. When in doubt, stay out might apply for the time being. We'll have to wait for a decent signal in the SPY for the next trade there. Still plenty of time left in the January option cycle. Europe and Asia were higher overnight. We'll see what tomorrow brings.

The New Year begins with a nice move to the upside as the Dow gained 246 points on light volume. The advance/declines were positive. The summation index is moving higher. The Dow closed at a new all time high. Other indices to follow as the week rolls on. The S&P 500 closed at a new all time high as well. Still short term overbought here and staying that way. That is a recipe for a rally and today probably starts the next leg up. The signal from the McClellan oscillator came through this time around. The NASDAQ led the way higher and that's a plus. Money still needs a home and is finding one with stocks. Gold got clobbered to begin the new year as the futures dropped about thirty bucks. The US dollar soared along with interest rates. These are tow of the reasons for the drop in the precious metal today. Gold did manage to hang on to the $1800 level for now. The XAU shed 2 3/4, while GDX lost 3/4. Volume was light. My GDX January calls most likely don't have even a chance of getting back to break even. I'll be selling them this week unless we see some kind of dramatic turnaround before the end of the week. Mentally I'm feeling OK. The VIX continued lower and remains extremely oversold. This too is a condition that supports the rally in stocks. The VIX has been oversold since the beginning of December. Not sure how much longer it can go. Well below the 20 level here and beneath both the 50 and 200 day moving averages. Some foreign markets were closed for holiday today so price action around the world was muted. Europe was generally higher and Asia mixed. We'll look for some upside follow through tomorrow.

Another last hour bout of selling took the Dow lower again today. The most watched index lost 60 points on light volume. The advance/declines were positive again despite the loss. The summation index is moving up. The major averages were all slightly lower despite but the TRAN posted a gain. The S&P 500 remains short term overbought. We got another signal last night from the McClellan oscillator for a big move, the second signal in the past two days. Expect a big move when things get back to normal early next week. My guess is that we'll see a huge rally on Monday. Gold continued to climb adding another $15. The US dollar was lower while interest rates held steady. The XAU and GDX had fractional gains on light volume. GDX also remains short term overbought. My GDX January calls are still solid losers heading into the new year. Just trying to cut the loss at this point with three weeks left in the January option cycle. Mentally I'm feeling OK. The VIX was a bit lower and still very oversold. This will not last forever. Not sure what to make of it. As this year draws to a close a look back at the 2021 trading year shows nothing but red ink. I had many more losing trades than normal, with hardly any winners. It was a year to forget. We'll continue to put in the effort and do the work to make 2022 successful. Europe and Asia finished mixed on the last day of trading for 2021. We'll be checking the charts as usual over the weekend. Happy New Year!

The Dow had a one day reversal to the downside as it opened higher and closed lower. Last hour selling sent the Dow to a loss of 90 points on light volume. The advance/declines were positive though. The summation index is moving up. The McClellan oscillator gave a signal last night for a big move within the next two sessions. We'll see how things go tomorrow to close out 2021. All of the major indices were losers but not with any conviction. The S&P 500 remains short term overbought. The market is simply making its way to the new year. Gold was up a dozen on the futures. The US dollar was up a bit and interest rates declined. The XAU gained 2 points, while GDX was up 1/2. Volume was light. I've decided to hold on to the losing GDX January call trade into the new year. Hoping to cut the loss with three weeks remaining in the January option cycle. Short term overbought for GDX and staying that way which could mean the rally will continue here. Mentally I'm feeling OK. The VIX was up slightly today thanks to the final hour decline. It remains very oversold. One trading day left in the year and it should be slow. Europe was higher and Asia mixed overnight. We'll close out 2021 tomorrow.

It seems as though the market is just hanging around waiting for the new year to begin. The Dow gained 90 points on light volume. The advance/declines were positive. The summation index is moving up. The S&P 500 remains short term overbought with prices stalling for the past two sessions. The NASDAQ was slightly lower today. No SPY trades in mind at the moment. Gold dropped $5 on the futures but were lower than that during the session.. The US dollar was lower and interest rates moved higher. The XAU and GDX had fractional moves one way or the other on light volume. Still no interest in the gold shares and they remain short term overbought. I continue to hold out hope that the gold shares will have their usual rally that comes this time of the year but it hasn't happened yet. Mentally I'm feeling OK. The VIX continued lower and remains extremely short term oversold. This has lasted longer than it should but the markets as usual go where they want. I'm not sure what to make of it. Just two trading days left in 2021 and I'm sure most of the serious business has been completed. Waiting on 2022 at this point. Europe and Asia were lower overnight. We'll see how it goes tomorrow.

A mixed bag today as the Dow rose 95 points light volume. The advance/declines were slightly negative. The summation index is moving up. Both the S&P 500 along with the NASDAQ were lower on the session. The S&P remains short term overbought. It's a holiday week and many of the players are at home. I do trust that this rally is for real though and I think it has legs to go higher into the beginning of next year. After that, who knows. Gold was off a couple bucks on the futures today. The US dollar was slightly higher and interest rates were little changed again. The XAU and GDX both had fractional losses today on light volume. They remain short term overbought and they both failed at their 50 day moving averages. There remains little interest in the gold shares. Mentally I'm feeling OK. The VIX was lower yet again today and remains extremely oversold. Not sure how much to read into this with the major players on hiatus. Money still needs a home and stocks seem to be the place to go for now. No SPY trades in mind for this week but there is plenty of time to go in the January option cycle. Europe and Asia were higher in last nights trade. We'll keep an eye on the overnight developments.

Up, up and away we go as the Dow climbed 351 points on holiday week light volume. The advance/declines were better than 2 to 1 positive. The summation index is moving higher. New all time highs again for the S&P 500. It remains short term overbought with no overhead resistance. Other indexes should follow to new highs as the days move ahead. Declines may be bought for now. Gold finished slightly lower. Both interest rates and the US dollar finished little changed. The XAU and GDX were little changed as well on anemic volume. This could turn out to be a slow week for the gold shares ahead of the new year. That's a guess as usual. Still deciding whether or not to take the loss in the current GDX trade. Short term overbought for GDX. Mentally I'm feeling OK. The VIX was lower today and has gotten very oversold on the short term technical indicators. This cannot last forever. It doesn't mean that a lasting decline will follow but we cannot go straight up forever either. For now the Santa Claus/Year end rally is in force. Europe was higher and Asia mixed overnight. We'll see how things go tomorrow.

Santa Claus has come to town as the Dow added another 196 points today. The advance/declines were better than 2 to 1 positive and the volume was light. The summation index is now moving up. The S&P 500 closed at a new all time high. I expect that other indices will follow. Overbought and staying that way for the S&P. No overhead resistance so we'll see how far we can go before the end of the year. Gold was up $7 on the futures. The US dollar finished little changed and interest rates ticked up. The XAU was up a point, while GDX rose 1/8. Volume remains light here. Short term overbought for the gold shares. I'll have to decide next week whether to book the loss on the current GDX January call trade this year or carry it into 2022 with the hopes that it will get back to break even at best. Mentally I'm feeling OK. The VIX was lower again today and remains oversold as the rally continues. Below the level of 20 and also beneath both the 50 and 200 day moving averages for the VIX. It is pretty much giving an all clear sign for higher stock prices. We've gone from despair to euphoria in a matter of a week and a half. A long holiday weekend is upon us. Next week should see low volume and probably higher prices. I'll be checking the charts over the next couple of days as usual. Europe and Asia were higher overnight. Merry Christmas everyone.

Continuing higher as the Dow rose 261 points on light volume. The advance/declines were almost 3 to 1 positive. The summation index is turning around. The battle with the zero line appears to have been won by the bulls. The Santa Claus rally is intact despite the decline on Monday. The S&P 500 looks to be heading back to new all time highs. The short term technical indicators there have turned higher. The NASDAQ led the way up today and that is a plus. The only negative is the low volume but that may be holiday related. Gold was up $15 on the futures and back above the $1800 level. The US dollar was lower and interest rates took a slight drop. The XAU was up 1 2/3, while GDX gained 1/3. Volume was light. GDX is now short term overbought on some of its indicators. I would have liked to see a better gain for the gold shares today but we'll take what we can get. Mentally I'm feeling OK. The VIX was lower and closed on its 200 day moving average. It is now below the important level of 20. It remains short term oversold and as long as that continues the rally will live on. Only one day left for trading this week as the holiday is almost upon us. I'd expect tomorrow to be a quiet, light volume affair around the globe. Europe and Asia were higher again last night. We'll keep an eye on the overnight headlines.

Bouncing back today as the Dow soared 561 points on lighter volume. The advance/declines were around 4 to 1 positive. The summation index is still moving lower but is trying to turn back around. I believe that it will turn back up as the decline has not accelerated going through the zero line so things should hold up for now. The S&P 500 closed back above its 50 day moving average. We are in a positive seasonal time frame and a collapse has probably been averted. Sideways until the new year is my best guess at the moment. Gold was down $5 on the futures. The US dollar was little changed again and interest rates rose. The XAU was up around 1 1/2, while GDX added about 1/4. Volume was light. The gold shares managed to rise again with a drop in gold. That's a plus but the light volume shows a lack of interest. Looks like I might just have to take the loss here before the new year. Mentally I'm feeling OK. The VIX was lower today but remains above the 20 level. Still short term oversold here. Only two trading days left this week with a long holiday weekend approaching. We'll see if volatility continues or we see a holiday slow down. Europe and Asia bounced back overnight as well. We'll see how thngs go tomorrow.

Well is wasn't a complete disastor as the Dow fell 433 points on good volume. The advance/declines were around 4 to 1 negative. The summation index is moving lower. It has now passed through the zero line. That's why I say it isn't as bad as it should be because we easily could have dropped a thousand points today. We'll have to see how the rest of the week plays itself out. The short term technical indicators for the S&P 500 are moving down and still have room to go. We are in a positive seasonal time period but that won't matter if falling through the zero line on the summation index takes charge. We've now closed below the 50 day moving average on the S&P. I'll be on the sidelines and in no hurry to buy for now. Gold fell a dozen on the futures. The US dollar finished little changed and interest rates ticked higher. The XAU and GDX ended little changed on light volume. That's a plus considering there was a drop in gold. My GDX January calls remain solid losers. Mentally I'm feeling OK. The VIX was up today but didn't finish as high as it started out. The short term indicators here remain oversold so there is plenty of room to move higher on the VIX. If that occurs we'll see the kind of drop that passing through the zero line represents. If not we may move sideways for a while before the next rally begins. I'm leaning towards the latter because today really could have been a heavily down session but it wasn't. It was just a negative day. Europe and Asia were lower as selling takes over around the world. We'll keep an eye on what happens tonight and see how things go here tomorrow.

It appears that the Dow played catch up with the other major averages today as it got slammed 532 points on expiration heavy volume. The advance/declines were negative. The summation index is still trying to hold on to the zero line. The McClellan oscillator again gave a signal yesterday for a big move and we got it today. However it was a mixed picture as the NASDAQ was only slightly lower as the Dow was the under performer. The S&P 500 did manage to close above its 50 day moving average but the short term indicators are turning lower. Perhaps the Santa Claus rally will begin next week. Gold was flat on the session after being higher early on. The US dollar was up and interest rates remained steady. The XAU and GDX also finished little changed after being higher early in the day. My GDX January calls remain solid losers. Will have to think about selling them next week or maybe before the beginning of the new year unless we see some more upside for the gold shares. Mentally I'm feeling OK. The VIX was up today and remains above the 20 level. Volatility has been the constant lately. My thinking is that things will slow down next week with the holidays arrival. However it seems the market is still trying to make up its mind on where to go. Positive seasonality is in play. I'll check the charts over the weekend and take it from there. Europe and Asia were lower to end the week. It's Friday afternoon and time for a break.

We didn't get any upside follow through to yesterdays gains as the Dow fell 29 points on heavy volume. The advance/declines were negative. The summation index is trying to turn around and remains close to the zero line. The overall market was much weaker than the Dow with the NASDAQ getting the worst of it. The S&P 500 dropped but is still short term overbought. Not exactly sure what's going on here but it all could be December expiration related. Most major players will take care of business by the end of tomorrow as we've got the holidays right around the corner. I'm still of the belief that higher prices are in the near future and that the Santa Claus rally will come to pass. Gold got a bounce today as the futures gained over $30. The US dollar was lower and interest rates had a slight decline. The XAU jumped 6 1/8, while GDX gained 1 1/2. Volume was good. It looks like yesterday put in a temporary bottom for gold and the gold shares. I did place an overnight order for the GDX January calls again at a lower strike price. It didn't get filled and I canceled it in the morning. My current GDX January calls are still big losers just not as much as before. There's still five weeks to go in this trade but I doubt the gold shares will move enough to turn this trade around. But who knows? It would take a lot more days like today. Mentally I'm feeling OK. The VIX moved back above the 20 level with today price movement. It also still remains short term oversold. Each passing day seems to give a different signal as to the market going higher or lower. I still think that the zero line will hold on the summation index and stocks will begin to turn higher on a steady basis from here. The alternative scenario would be a collapse from here and that doesn't seem probable during this usually bullish time of the year. Europe and Asia were higher overnight. We'll see how expiration Friday goes.

The Fed spoke and the market did whatever it felt like and the Dow climbed 374 points on heavy volume. The advance/declines were 2 to 1 positive. The summation index is still moving lower but will be trying to turn back up. It should be successful as nobody wants to see the market fall apart for the holidays. Increased tapering and increased chances of rate hikes from the Fed did not lead to selling. It was already in the market. The S&P 500 remains short term overbought and we're going to see new all time highs as we are practically there. Other indices will follow. A couple of days left before expiration and we'll see where we go. Gold was lower for much of the session but then turned around and the futures were up a few bucks. The US dollar was lower and interest rates moved slightly higher. Not at all what you'd expect with a tighter Fed. The XAU fell 1 7/8, while GDX lost 3/8. Volume was heavy here as it appears that the gold stocks may have put in a bottom here. They finished well up form the lows of teh day. Of course that won't save my GDX January calls as they rmeain solid losers. GDX is now pretty far from its 50 day moving average and we could see a rally back to that. Won't be enough to help my trade though. Perhaps I'll try the January calls again at a lower strike price. Mentally I'm feeling OK. The VIX turned back down is is below the 20 level again. It remains short term oversold. I haven't been able to figure this indicator out lately but as long as it remains oversold the path of least resistance for stocks will be up. We're getting close to Santa Claus rally time also. We'll be looking for higher prices to end the week as the market has rallied on what should be considered bad news. The zero line on the summation index should hold up this time around. Europe and Asia were mixed in last nights trade. We'll keep an eye on the overnight developments.

Another downer ahead of the Fed as the Dow fell 106 points on good volume. The advance/declines were better than 2 to 1 negative. The summation index is heading lower. It is back to heading towards the zero line which would mean a collapse. My guess is that the market will do whatever it has to in order to avoid that. The overall market was again weaker than the Dow with the NASDAQ leading the way lower. Inflation data came in higher than expected. Despite the two day decline, the S&P 500 is still short term overbought. Not sure what to expect tomorrow. The market did close well off of the lows so perhaps we'll turn things around tomorrow. Gold fell over $15 on the futures. The US dollar was up and interest rates had a slight gain. The XAU lost 1 7/8, while GDX shed 3/8. Volume was light. Gold dropping with inflation rising was not the outcome that I expected when I took on the current GDX call trade. It is the opposite of the past relationship. GDX is oversold and staying that way which implies more downside to come here. My January calls are on the way to the graveyard. It is just a matter of how much the loss will be. Mentally I'm feeling OK. The VIX was up again today and is back comfortably over the 20 level. It remains short term oversold despite the rise. If these short term indicators start to move back up we are going to see quite a drop in the stock market. I'm not saying that it is going to occur but with the summation index also in the danger zone again you cannot ignore the possibility. It would seem to be unexpected but not for those paying attention. Perhaps the Fed will have something to say that will turn stocks back up. We'll see. Europe and Asia were down overnight. All eyes and ears on the Fed tomorrow.

We got a signal on Friday from the McClellan oscillator for a big move within the next two days and we got it today as the Dow fell 320 points on average volume. The advance/declines were 2 to 1 negative. The summation index is beginning to roll over. The NASDAQ led the way down and that isn't a plus for the bulls. The short term indicators for the major averages are starting to roll over. If this continues it won't be good for stocks. Waiting on the Fed announcement for Wednesday but many are saying it's already in the market. We'll still to the technicals and the S&P 500 is short term overbought on some of them. Probably too late for the SPY December puts if you wanted to try them but who knows? Gold was up a couple bucks on the futures. The US dollar rose while interest rates dropped. Both the XAU and GDX finished little changed on the day. Volume was average. My GDX January calls continue to lose ground and if we don't see some gains here this week I will be taking the loss and moving on. Mentally I'm feeling OK. The VIX moved back above the 20 level today. It also closed above both the 50 and 200 day moving averages. Still short term oversold here. This indicator has been tough to figure out lately but it has shown that volatility is here to stay for a while. Not exactly sure where the market goes from here now as a case can be made either way. I'll probably stay on the sidelines and wait to see what the Fed has to say on Wednesday. Europe was lower and Asia mixed to start the week. We'll see how things go tomorrow.

Inflation data was high but came in where expected and the Dow rallied 216 points on light volume. The advance/declines were slightly negative. The summation index is now moving sideways. Most of the major stock averages were up today. The S&P 500 closed at a new all time high. It is short term overbought now but not completely so. I am still thinking about the SPY December puts ahead of the Fed next week. However we'll have to see how the market moves before Wednesday. I did not think that we would see new highs again this year when the recent decline started. So perhaps the sidelines would be a better spot for me with regards to the SPY. We'll see. Gold was up a few bucks on the futures today but did come off of its highs. The US dollar was lower and interest rates finished little changed. The XAU lost 1 1/8, while GDX fell around 20 cents. Volume remains very light for the gold shares. There is no interest here. My GDX January calls continue to slowly lose ground as this trade has not worked out as planned. GDX remains short term oversold and staying that way. Once again gold itself was up and the gold shares did not follow. That's a negative. Mentally I'm feeling OK. The VIX was lower and closed below the 20 level. It is resting on its 200 day moving average. Short term oversold but it could stay that way if the rally continues. It is implying higher stock prices going forward as it appears that we are in the midst of a December rally. A bit early for the Santa Claus rally but you cannot ignore that prices are moving up. I'll be going over the charts as usual this weekend while I try and decide what action to take next week. Europe and Asia were lower to close out the trading week. It's Friday afternoon and time for a break.

Just waiting on tomorrows inflation data as the Dow finished basically unchanged on the session. The advance/declines were almost 3 to 1 negative and the volume was light. The summation index has turned back up but may start tracking sideways. The overall market sold off though with the NASDAQ leading the way lower. I did place an overnight order for the SPY December puts but it wasn't filled and I canceled it in the morning. I still like this idea but now perhaps will wait until before the Fed announcement next Wednesday. Running out of time though as there's only six days left in the December option cycle. I also may just sit this one out since I'm already involved in the GDX call trade. The short term indicators for the S&P are beginning to roll over. If that does occur we'll be looking at lower prices. Gold dropped around ten bucks on the futures today. The US dollar was higher and interest rates were slightly lower. The XAU fell 3 2/3, while GDX lost over 3/4. Volume was average. My GDX January calls are now solid losers and it may be time to think about just getting out of this trade. I'll see how gold reacts to the inflation data and take it from there. There's still time for the trade to work out but unless we see a quick turnaround this trade will be declared dead. Mentally I'm feeling OK. The VIX was up a bit today as the 20 level has provided a floor for now. This was another reason to attempt the SPY puts because it implies that volatility is about to go up again. We'll see if that actually happens. So the market is again at an interesting juncture. Tomorrow sould tell us something about where we are going. Perhaps a retest of the recent lows? Europe was lower and Asia generally higher in last nights trade. We'll see how the market reacts to the latest inflation data tomorrow.

Still moving higher as the Dow gained 35 points on average volume. The advance/declines were positive. The summation index has turned around. The NASDAQ was the outperformer today and that is a plus. The S&P 500 is near a new all time high. My idea for getting the SPY December puts ahead of the inflation number on Friday may be put on hold. I had expected that the highs for the year had already been made but it looks like that thought was wrong. The short term technical indicators for the S&P have turned higher and are not yet overbought. I'll reconsider that trade idea tonight before deciding what to do. Gold finished basically flat on the session. The US dollar was lower as interest rates continued to climb. The XAU and GDX had slight fractional gains on extremely light volume. No interest in the gold shares but at least they're not moving down. My GDX January calls remain at a loss. Mentally I'm feeling OK. The VIX dropped to 20 but remains above both its 50 and 200 day moving average. So this indicator is at the moment of truth. It either contiues to drop and the rally lives on or it turns back up and the selling resumes. We should know by the end of the week what is going to happen. I can't say I'm leaning in either dorection at this point but I'll go over things again later tonight. The market has had quite a bounce and it did save the summation index from going through the zero line. Asia was higher and Europe lower overnight. We'll keep an eye on tonights developments.

Stock market continued higher today as the Dow soared 492 points on good volume. The advance/declines were better than 3 to 1 positive. The summation index is turning around before the zero line. That is significant as it implies that the worst is over for now. The market is doing what it has to to fend off a collapse. The NASDAQ was the leader today and that is a plus. There was no news to use as an excuse for the rally. The market is moving on its own as it always does. Many indices had a gap up at the open. I'm still considering the SPY December puts ahead of the inflation report on Friday but we'd have to continue higher for the next couple of sessions. At this rate it's possible. Gold was up a few bucks today. The US dollar finished little changed and interest rates continued to move up. The XAU was up 1 1/3, while GDX added almsot 1/4. Volume was very light as there is really no interest to own the gold shares here. My GDX January calls lost more ground today despite the slight gain and that is a negative. Premium was being taken out of these options as they are out of the money and the underlying asset is going nowhere fast. Mentally I'm feeling OK. The VIX dropped again today but still remains above the inportant level of 20. Another day like today would take care of that. Not sure what to think here as the VIX still remains above both the 50 and 200 day moving averages. We'll just have to wait and see what happens from here. It does however seem like the recent decline has ended. Will we now be heading on to new all time highs? The S&P 500 is almost there. Europe and Asia had huge rallies overnight. It seems like we've gone from fear to greed in record time. We'll see what tomorrow brings.

The Dow soared today as the most watched index gained 647 points on good volume. The advance/declines were 3 to 1 positive. The summation index is still heading down but today could be the beginning on an attempt to turn this thing around. The summation index is getting close to the zero line and if the market doesn't hold up here we'll see a collapse. I'm not sure what's exactly in store going forward because we've seen some indexes really drop while the S&P 500 hasn't even had a 5% correction here. The Dow outperformed both the NASDAQ and the S&P 500 today. If we somehow remain positive going into Friday, I'll try the SPY December puts. Otherwise I'll have to stay on the sidelines because things really could still go either way. Gold was off a few bucks today on the futures. The US dollar was slightly higher and interest rates rose. The XAU was up 1 3/4, while GDX added 3/8. Volume was light. Gold down and the gold shares up is a positive but the lack of volume makes it suspect. My GDX January calls are still at a loss. Mentally I'm feeling OK. The VIX was down today and the short term indicators here have rolled over. Normally that would imply higher prices in the near term but this hasn't been the case lately. The VIX is still far above the 20 level so I'd expect the volatility to continue. We'll see if we can get a more than one day advance. Not much data out this week but there will be inflation news on Friday. Ideally I'd like to own some of the SPY puts ahead of that. So we'll see how things go from here before the end of the week. As always the market rarely cooperates with the best laid plans. Europe rallied to start the week while Asia was lower. We'll see if there is any follow through buying tomorrow.

The jobs report was weaker than expected but the Dow only dropped 60 points on heavy volume. The advance/declines were better than 2 to 1 negative. The summation index is still moving down. The overall market was much weaker than the Dow, with the NASDAQ leading the way lower. That is not a positive. The S&P 500 remains short term oversold. Only a final hour rally prevented the day from being even worse. That holds off the bears for now but they are in control. The S&P is clinging to its 50 day moving average but I'm not sure that it is going to hold. Still 2 weeks left in the December option cycle. Gold bounced today with the futures up over $20. The US dollar finished little changed but interest rates fell. The XAU and GDX had slight fractional gains on light volume. Gold up and the gold shares barely moving is not a positive for the bulls here. GDX remains short term oversold. My January calls here are still showing a loss but not as much as yesterday. I still think that this trade will work itself out and show a profit. Plenty of time left here. Mentally I'm feeling OK. The VIX was up again today and remains short term overbought. The VIX reading is over 30 now and volatility should be with us for a while. It works both ways though as we've seen this week. My guess is that it will be pretty crazy when the Fed meets in a week and a half. Again, if we do get short term overbought before that, I'd like to try the SPY December puts. However at the rate the market is going here, we won't get the chance. Volume has picked up considerably to the downside and that fact cannot be ignored. If things don't hold up here soon a collapse is possible with the summation index close to the zero line. Lots of things to consider while going over the charts this weekend. Volatility does create opportunity. Europe was lower and Asia generally higher to close out the week. It's Friday afternoon and time for a break.

An oversold bounce back today as the Dow rose 617 points on heavy volume. The advance/declines were shy of 3 to 1 positive. The summation index is still moving lower. It is a volatile period right now for stocks, with big moves in both directions on a daily basis. The Dow was the strongest performer of the big 3 today. We're still oversold on the S&P 500 even with todays gains. The jobs report will be out tomorrow and that should be the catalyst for more price movement. I'd still be cautious here even with todays gains. Gold continues to drop as the futures lost $15. Interest rates were slightly higher along with the US dollar. The XAU and GDX had fractional losses on good volume. I did go ahead and purchase some more of the GDX January calls and that trade is showing a small loss. GDX is both short and medium term oversold. Technically now is the time that makes the most sense to get long. Overall the trade is losing money but there's seven weeks to go and my thinking is that we'll see the gold shares head up from here. I could be wrong. Mentally I'm feeling OK. The VIX was lower today and that fits the rise in prices. Still short term overbought on the VIX and well above the 20 level. Lot's of time left in the December option cycle so I will hope to see a better rise in price in order to try the SPY December puts. Perhaps during expiration week but let's not ahead of ourselves. Europe was lower and Asia mixed overnight. We'll see what the employment report has to say and close out a volatile trading week tomorrow.

Now it's starting to get a little bit crazy out there as we had a one day reversal to the downside today. The Dow lost 462 points on heavy volume again. The advance/declines were better than 2 to 1 negative. The summation index is really moving down. Oversold to extremes on the McClellan oscillator and yet we are still moving down. Not sure how long this will continue but lower is the idea here. Things are oversold and there will be opportunities. My guess is that we've seen the highs in the market for a while. The easy money is going to dry up and what's left to move things after that? The S&P 500 closed below its 50 day moving average and is already short term oversold. It might be time to just get out of the way. Gold was up a few bucks on the futures but came off of its best levels. The US dollar was slightly higher and interest rates slightly lower. The XAU lost 4 1/4, while GDX shed almost a point as the gold stocks followed the general market down. Volume was good. I did place an order for some more of the GDX January calls to lower my average price but the order wasn't filled despite the price hitting the bid. I may try again tomorrow but this would break a pretty solid rule of not to put more money into a losing trade. GDX is now oversold both short and medium term. We are also in a market environment that is out of control to the downside for stocks. It creates opportunities. Whether or not GDX is one of them will only be known after the fact. I'll have to think it over more tonight. Mentally I'm feeling OK. The VIX continued to climb, remains overbought and it's anybodies guess where it goes next. The market has reached a free fall mode with volatility the main theme. And there's still plenty of time in the December option cycle to trade. Hold on to your hats as the summation index is approaching the zero line and that would move it into the crash zone. Not there yet and I would not expect it to happen but it could. Perhaps the sidelines would not be a bad place for now. Asia and Europe were higher last night. We'll see what tomorrow brings.

Back to the downside today as the Dow fell 652 points on extremely heavy volume. The advance/declines were around 4 to 1 negative. The summation index is moving lower. Losses all around as everything is being sold. The easy money Fed policies are coming to an end but the decline will be blamed on the new virus varient. Short term oversold now for the S&P but I don't expect any long lasting rally to take hold. We've seen the highs for the year. Support could come in around the 50 day moving average at 4535 for the S&P 500. It may or may not hold as we are in a selling mode on wall street for now. Gold dropped on the hawkish Fed comments today as the futures fell over ten bucks and below the near term support at $1780. The US dollar was a bit lower while interest rates remained steady. The XAU fell 1 1/8, while GDX lost 1/3. Volume was good to the downside. My GDX January calls are now showing a loss. The gold shares had a downside reversal today as they opened strong and then fell apart. Not a good sign for the precious metal bulls. We'll see how it goes tomorrow. Mentally I'm feeling OK. The VIX spiked back up today and the signals that I've been seeing here lately have been wrong. As long as the VIX remains above the 20 level, volatility will be on the increase both positive and negative. That much we can be sure of. We'll take our cues from the summation index and as long as it's moving lower the trend for stocks will be down. We'll get the beginning of a new month tomorrow and that usually means new money flows. But that may not mean anything the way things are headed at the moment. Europe and Asia were lower overnight. Perhaps the heavy volume today was a washout to the downside and we'll see some kind of bounce tomorrow. That's just a guess as usual. Things are getting interesting though. We'll keep an eye on tonights developments.

Buyers were out in full force today as the Dow gained 236 points on average volume. The advance/declines were positive. The summation index is still heading lower. Fears of the new virus mutation faded as not much is actually known about where this disease is headed. The overall market was much stronger than the Dow with the NASDAQ leading the way. The short term technical indicators for the S&P 500 are turning back up. One day doesn't make a rally but at least the selling took a break for now. We've got the end of the month tomorrow. Employment numbers due out on Friday. Gold was flat on the futures. The US dollar was slightly higher along with interest rates. The XAU and GDX had slight fractional moves one way or the other on light volume. GDX is holding its 50 day moving average and is short term oversold. A bounce is due. My GDX January calls are showing a small loss. Mentally I'm feeling OK. The VIX collapsed but remains above the 20 level. The short term indicators here have rolled over. This implies higher stock prices going forward. However we got the same read from the indicators right before Fridays collapse. As long as the VIX stays above 20, volatility should increase. The market is now also at a heightened level of response to headline risk due to the uncertainty of the latest virus varient. Nimble trading is required. If we do happen to get back to short term overbought in the SPY I will try the SPY December puts. Plenty of time to go in the December option cycle. Europe higher and Asia lower to begin the week. We'll keep an eye on the overnight headlines.

Stock markets around the world collapsed as a new strain of the corona virus hit the news wires. The Dow dropped 905 points on half day heavy volume. The advance/declines were better than 5 to 1 negative. The summation index is heading down. What was supposed to be a quiet light day of trading during the holiday was anything but that. I cannot remember the Friday after Thanksgiving being anything like today. But as always the market goes where it wants. Most everything was being sold as I'm sure margin calls went out. The S&P 500, like most of the major averages, had a gap lower to start the day. The short term technical indicators here are not yet oversold. So there's probably more selling to come. Throw in a tighter Fed stance and the party could be over for stocks. It is too soon to tell though. Gold rallied early on but it got sold as well. The futures finished slightly higher. The US dollar sold off as interest rates tanked on a flight to bonds. The XAU fell 2 1/4, while GDX dropped 1/3. Volume was good for a half days trade. Somehow the GDX January calls that I own stayed about the same despite the drop. Looks like some volatility premium was priced in. GDX has now broken its short term up trend line but did manage to close above the 50 day moving average. Perhaps I'm just looking for positives in a negative situation. The short term indicators here are oversold but not completely. Mentally I'm feeling OK. The VIX spiked much higher in a complete reversal of what yesterdays action said. It is now far above the 20 level and implies more volatility to come. Monday morning as well as next week should be pretty interesting. Was today an overreaction? Time will tell on that. The market doesn't like unknowns and that is what this new virus strain represents. We'll stick to the technicals which have now rolled over and are not yet completely oversold. Plenty to think about this weekend with 3 weeks left in the December option cycle. Europe and Asia got clobbered to end the week. It's Friday and time for some rest.

The Dow fell 9 points today on pre-holiday listless trading. The advance/declines were positive and the volume was light. The summation index continues lower. Some of the major stock indices had one day reversals to the upside including the S&P 500. The economic data went both ways today but many players decided to take the day off. More of the same for holiday shortened trading on Friday. Things won't get back to normal until next week. Gold drifted up four bucks today. The US dollar continued higher and interest rates were steady. The XAU and GDX had slight fractonal losses on very light volume. I sold the GDX January calls that I bought on Monday for a 20% loss. I did this in order to purchase the GDX January calls again at a closer to the money strike price, which I did. I was willing to take the small loss in order to get the strike price that I originally wanted. Now I could have held on to both positions but the money out there at risk would have been more than I had allotted to this idea. It still may or may not work but I felt this was the right thing to do today. We'll see going forward. Mentally I'm feeling OK. The VIX was lower today and the short term indicators have rolled over. The VIX is signaling higher prices coming for stocks. Europe and Asia were mixed in last nights trade. Happy Thanksgiving everyone.

We were looking for a decent upside day for the Dow and we got one today as it rose 194 points on average volume. The advance/declines remain negative though. The summation index is moving down. It's been anything but a quiet holiday week so far. We'll get plenty of economic data out tomorrow ahead of Thanksgiving. So I'd expect some more significant price movement before everyone leaves for the week. Friday will be a shortened session for stocks with the major players on the sidelines. The S&P was higher today but the short term indicators are not giving any kind of signal. Not overbought here anymore but not oversold either. Gold conitnued to drop as the futures shed $15 and closed below $1800. The US dollar finished little changed but interest rates continued to rise. The XAU lost over 1 3/4, while GDX dropped 1/2. Volume was average. GDX is still holding the up trend line that began in the beginning of October but is not yet completely oversold on a short term basis. My GDX January calls as shwoing a small loss. The reason to get into this trade has now been invalidated. Holding the trend line is the only way to keep holding this trade. I'm not sure that will happen though. We'll keep an eye on it going forward. Mentally I'm feeling OK. The VIX was up again today but did come off of its best levels. Overbought on the short term technicals here and that implies that we'll see higher stock prices going forward. We'll see if that happens in the coming days. I think the question here and now is has this selling been the beginning of something real to the downside or just anothe blip in the road on the way to more all time highs? Time will tell but I certainly don't have a good feel for the answer at the moment. Some of the major stock indices have now retraced back to their consolidation breakout points. Holding in here would be necessary for the bullish cause. Europe was lower and Asia mixed in last nights trade. We'll see what tomorrow brings.

It was a very volatile session and not what was expected for the beginning of a normally quiet holiday week. The Dow managed to hang on to a gain of 17 points on above average volume. The advance/declines were negative. The summation index is moving lower. Both the NASDAQ along with the S&P 500 had one day reversals to the downside, opening higher and closing lower. The market rallied early on the announcement the Fed chairman had been re-nominated to his position. An hour into the session we then had a sharp selloff. The market climbed its way back and we had decent gains going into the final hour. The market then dropped like a stone to finish the day negative in many of the major averages. I'm not sure what's going on here but clearly there's something brewing. Gold got clobbered on the Fed re-appointment as the futures fell over $40. The US dollar continues its climb and interest rates jumped. The XAU lost 2 1/2, while GDX dropped 2/3. Volume was good to the downside. My open order for the GDX January calls got filled. However it now appears that the inverse head and shoulders breakout on GDX has failed. The short term technical indicators for GDX are at mid-range. Unless GDX somehow holds in here at the 33 level, this trade will be a loser. The only thing this trade has going for it now is time. There is an up trend line at 32 but at this rate that won't hold either. We'll see what happens tomorrow. Mentally I'm feeling OK. The VIX jumped today and closed above both its 50 and 200 day moving averages. The short term indicators here are getting to overbought. Another day of decline would get us there. I expected this week to be benign and quiet with an upside bias. So far it has been anything but that. I'm not sure why. The Dow is overdue for a big upside day. I thought it would be today after this mornings announcement but it looks like the market has other ideas. Stay tuned. Asia and Europe were mixed overnight. We'll keep an eye on tonights developments.

The Dow continues to drop as the most watched index fell 269 points on good volume. The advance/declines were again close to 2 to 1 negative. The summation index is moving down. It was a mixed bag as the NASDAQ along with some other indices were positive on the day. The S&P 500 was lower and remains short term overbought. I'm not sure what to make of what's going on as the Dow is short term oversold. The NASDAQ conitnues to move higher with the summation index moving lower. The market price action is not making sense at the moment. I don't have any solid ideas on where we are going from here. Gold was down $13 on the futures. The US dollar was higher and interest rates were lower. The XAU shed 2 1/2, while GDX lost over 1/2. Volume picked up slightly to the downside. We are just about at the neckline and breakout point on GDX. It needs to hold as we have now seen the pullback that we were hoping for. GDX is almost at 33.50 and that is an important level to try and hold. My open order remains out there but I may have to adjust it again. Worst case scenario is that GDX doesn't hold the 33-33.50 area. If that occurs then the inverse head and shoulders pattern would be negated. For now I'm still a believer in the pattern and would like to own the GDX January calls. Mentally I'm feeling OK. The VIX was higher today but did come off of its worst levels. Not getting a good signal here one way or the other right now. I'm a bit confused as to what's going on in the market with the S&P along with the NASDAQ moving higher and most other averages selling off. With the summation index moving down caution is proper theme for now. Plenty of charts to peruse over the weekend with a shortened holiday week going forward. Plenty to ponder. Europe was lower and Asia mixed to close out the week. It's Friday afternoon and time for a break.

Volatility was the name of the game today as the Dow fell 60 points on average volume. The advance/declines were better than 2 to 1 negative again. The summation index is moving lower. The Dow was once again the laggard as both the NASDAQ and the S&P 500 were positive. The S&P along with the NASDAQ did close at new all time highs. It still remains short term overbought. We are getting kind of a mixed picture here as not all of the indexes are on the same page. Not exactly sure what that means going forward. Gold was off eight bucks on the futures. The US dollar was lower again along with interest rates. The XAU fell two points, while GDX was off 1/3. Volume remains light here. GDX continues to be short term overbought but the indicators have begun to roll over. Mentally I'm feeling OK. The VIX perked up today with the volatility and finished higher despite gains in some of the major indices. The short term technicals here are mid-range. Expiration Friday tomorrow ahead of a holiday week. I'd expect the volume to pick up as players will want to square positions before taking the week off. The summation index is moving lower but we are not seeing a drop in prices. Perhaps we're on the cusp of a move higher for the major averages. That's simply a guess at this point. Europe and Asia were lower overnight. We'll see how expiration Friday turns out tomorrow.

We spent the day on the downside as the Dow lost 210 points on average volume. The advance/declines were around 2 to 1 negative. The summation index is now moving lower. The Dow was the lead underperformer today. No real news to speak of as the S&P 500 stalls in the area of new all time highs. It remains short term overbought. I'm still in the bullish camp here unless the summation index really starts to drop. The NASDAQ is on hold for new highs as well. My thinking is that by the close on Friday theses indices will hit new all time highs. Gold was up almost $15 today as both interest rates and the US dollar dropped. The XAU and GDX had fractional gains on light volume. I adjusted my open order for the GDX January calls. It appears to me now that GDX is simply moving sideways to digest the recent gains and will not make a return trip to the neckline breakout point. This of course could change going forward but that's how things appear at the moment. My hope is for some kind of decline but I think there are quite a few out there with the same idea. The market rarely cooperates. I'll continue to try and remain patient because the ideal time for this trade is long gone. Mentally I'm feeling OK. The VIX was higher today and that fits the lower overall stock prices. The short term technical indicators here have now turned back up. This implies more near term selling which I don't agree with. So we will see where things go from here. We haven't seen the usual positive price bias of expiration week yet. There's only a couple of days left. Asia was lower and Europe mixed in overseas trading. We'll keep an eye on the overnight developments.

Moving higher today on better than expected retail sales as the Dow gained 54 points on light volume. The advance/declines were negative though. The summation index continues to track sideways. The overall market was much stronger than the Dow, with the NASDAQ leading the way. As long as that's the case the bulls are in control. Expect more new all time highs for the S&P 500 as the week progresses. Still short term overbought for the S&P but that won't stop things from going higher in my view. Gold was off $15 on the futures as the US dollar continues to climb. Interest rates were higher as well. The XAU shed 2 1/4, while GDX lost almost 2/3. Volume was light. If the selling continues perhaps I'll get the chance to purchase the GDX January calls. A pullback from the breakout of the neckline for GDX would take us back to around the 33.50 area. GDX does still remain overbought here. We'll see how it goes. Mentally I'm feeling OK. The VIX was lower today. The short term technical indicators here are neither overbought or oversold. My guess here is that the VIX will trend lower as the market goes up this week. I'm expecting the usual positive expiration week bias to be in effect. I'd also expect the volume to start picking up as next week is holiday week with many players on vacation. Not much more economic data due out this week. We'll keep an eye on things but I would expect more buying as the week goes on. Both Europe and Asia were mixed in last nights trade. We'll see what tomorrow brings.

A day of hanging around as the Dow fell 12 points on light volume. The advance/declines were negative. The summation index is trending sideways. Not much change for the major averages today. It is expiration week though so we'll see how the rest of the week goes. Retail sales data out tomorrow could be a market mover. The S&P 500 remains short term overbought. Gold was off a couple of bucks. Both the US dollar and interest rates went up. The XAU and GDX had slight fractional gains on light volume. My open order for the GDX January calls remains out there. Mentally I'm feeling OK. The VIX was up just a bit today and that fits the market action. A shorter post here today as the blog is later than usual. Europe was higher and Asia mixed overnight. We'll see how Tuesday goes.

Continuing to move higher as the Dow gained 179 points on light volume. The advance/declines were positive. The summation index is trying to turn back up. Once again the NASDAQ led the way higher. The S&P 500 had a nice gain and the short term technical indicators are turning back up. Option expiration week is on tap so perhaps we'll head back to new all time highs again. We are still pretty far removed from the 50 day moving average though. Gold added a few bucks as the US dollar had a slight drop. Interest rates finished little changed. The XAU and GDX had fractional gains on light volume. GDX remains short term overbought. Any drop in GDX would be a chance to get some of the longer term options for January or March. All signs point to gold starting a multi-week move higher in my opinion. Still hoping for a back test of the neckline breakout in the inverse head and shoulders pattern for GDX. That's the most we can hope for as this move in the gold shares has been missed. Mentally I'm feeling OK. The VIX continued lower and that fits with todays rally. Indicators here have turned back down which suggests that we'll see higher stock prices next week. We'll see. Not much else to add today as it was a lower week for the S&P on light volume. A pause was needed after the extended run up that we've seen since the beginning of October. I'd expect us to be higher again by the end of next week. Plenty of charts to go over this weekend as usual. We'll be looking to get aboard the gold train next week if we see some weakness. May not happen though. Europe was higher with the exception of the FTSE. Asia was up. It's Friday afternoon and time for a break.

Mixed would be the beat way to describe todays market price action as the Dow fell 158 points on light volume. The advance/declines were positive. The summation index is starting to trend sideways. The overall market was stronger than the Dow with the NASDAQ posting the best gains. The S&P 500 was barely higher. Still pretty far above the 50 day moving average here but there's nothing in the way of more gains to come in my mind. Option expiration week on tap with its usual positive bias. The only thing that would change my mind on the S&P is if we continue lower tomorrow, which would make the weekly candlestick chart suspect. We'll see how Friday goes. Gold continues higher as the futures tacked on $15. The US dollar was higher again along with interest rates. The XAU climbed almost 4 1/2, while GDX added 3/4. Volume was good. I did put in another order for the GDX January calls but we'd need to see some pullback for it to get filled. We've broken out of the head and shoulders pattern for GDX. We might get a chance for the calls if we see a back test to the neckline in the coming days. GDX is now above its 200 day moving averge but is getting short term overbought. Gold is moving up despite what interest rates and the US dollar are doing. That is bullish. Mentally I'm feeling OK. The VIX was lower today in a mixed market. It wasn't a surprise since this indicator does not stay overbought for extended periods of time. The only concern here for the bulls was a lower VIX but not exactly a rebound across the board in stocks. We'll see how this plays out moving forward. Europe and Asia were generally higher overnight. We'll close out the trading week tomorrow.

Another day of selling as the Dow fell 240 points on good volume. The advance/declines were better than 2 to 1 negative. The summation index is beginning to turn sideways. Inflation data came in hotter than expected was the media culprit. But we know that the market was overbought to the extreme and the only solution would be some kind of decline. I still believe that it is just a bump in the road and not the beginning of an extended decline. The NASDAQ did lead the way lower though. The short term indicators for the S&P 500 have rolled over but do still remain in overbought terrotory. We'll see how the rest of the week plays itself out. Gold rallied with the December futures up over $20. The US dollar climbed along with interest rates. The XAU was up almost 2 points, while GDX gained about 2/3. Volume was heavy as the neckline of the head and shoulders pattern for GDX was broken. This is a move that should be chased. GDX is stalling at its 200 day moving average but all signs point to higher prices going forward. I canceled my open order for the January calls and will decide what to do tonight with the next order. I'll have to move to a higher strike price but the rally in the gold shares is for real. Gold moving up on higher inflation is what we would expect but it hadn't been previously happening. Gold moving up with a stronger dollar and higher interest rates is a positive sign. Money is moving into this space and has been quietly for the past month. It doesn't appear that waiting for another pullback here is the proper strategy. Mentally I'm feeling OK. The VIX was again higher today and is overbought. It remains below the 20 level. My guess is that the decline will be short lived according to this indicator. Most of the major stock indices remain pretty far from their 50 day moving averages still, even with the two day decline. So perhaps we will see some more near term selling. Europe was higher and Asia lower in last nights trade. We'll see what tomorrow brings.

We saw some selling today and that was to be expected. The Dow fell 112 points today on light volume. The advance/declines were negative. The summation index is moving higher. The inflation number today came in where expected but the market was overdue for some pullback. The NASDAQ led the way down but I don't think that the rally has ended. This is just a needed pause before we move higher in my humble opinion. The S&P 500 remains short term overbought. Gold continued higher with the futures up six bucks. The US dollar was lower along with interest rates. The XAU rose 1 3/8, while GDX was up 3/8. Volume was light. Not yet short term overbought on the indicators for the gold shares. I would really like to chase this move higher in GDX but cannot bring myself to do it. I missed the opportunity for the calls last week when I did not adjust the price corrrectly on my open order. The inverse head and shoulders pattern on GDX remains intact but hasn't broken through the neckline yet. I'm hoping now for a double right shoulder in order to buy the calls but hope is not a trading strategy. Mentally I'm feeling OK. The VIX was higher today and that fits with todays decline. The VIX was pushed back at its 50 day moving average and remains below the 20 level. The short term indicators here are now overbought. This is one of the reasons to not be too bearish near term. The VIX doesn't stay overbought for lengthly periods of time. It should roll back down and that would correspond with a gain for stocks. We'll see how the market digests the next inflation report tomorrow. Asia was mixed and Europe lower last night. We'll keep an eye on the overnight headlines.

It was a day of just hanging around as the Dow rose 103 points on average volume. The advance/declines were positive. The summation index is moving up. The Dow was the out-performer today as the other main indices had slight gains to new all time highs. Waiting on the inflation data due out on Tuesday and Wednesday. Still overbought to the extreme on the major stock indexes. I believe that a sharp drop is coming and perhaps the inflation data will set things off. Or not as this rally has had legs galore. I think that it's been up 8 days in a row now for the S&P 500. Going straight up usually doesn't end well. Gold gained $9 on the futures. The US dollar was lower and interest rates ticked up. The XAU was up 1 1/8, while GDX added over 1/8. Volume was light. My open order for the GDX January calls remains. I did notice some extremely high volume for a couple of strike prices on the GDX January calls. Perhaps the big money is loading up here. We'll see tomorrow if it expanded the open interest. The short term technical indicators for GDX are mid-range. Mentally I'm feeling OK. The VIX was higher again today with a gain in stocks. This does not fit again as the short term indicators here are moving higher but we haven't seen a decline in stock prices. It may mean that we will get some kind of blow off top soon but that's just a guess on my part. What is the case there is a disconnect between the VIX and stock prices at the moment. I'm not sure what it means. Price action was muted in Europe overnight, with Asia finishing mixed. We'll see how things go tomorrow.

Still moving higher as the Dow gained 203 points on good volume. The advance/declines were 2 to 1 positive. The summation index is moving up. The jobs numbers were better than expected and the market took off from the start. New all time highs on many indices again as the rally seemingly has no end. Overbought, staying that way and who knows how long it will last. Moving straight up and we know that the end won't be pretty. Overdue for some kind of pullback but none arrives. The Dow was the leader today. Gold rallied as the futures gained $25. The US dollar was a bit lower and interest rates dropped. The market reaction for gold, the dollar and interest rates was the exact opposite of what you'd expect from a stronger jobs report. The XAU climbed over 3 1/2, while GDX was up a point. Volume was good. It appears that the inverse head and shoulders pattern for the gold shares is real. We have yet to break the neck line but the implications are that the gold shares still have a long way to go. Have I missed this trade again by not purchasing the GDX January calls this week? Maybe. But I'll be looking for some weakness next week to buy some and I'll move the strike price higher to get filled. It looks like a trade that will work out at this point. But we all know how markets are. They go where they want. Mentally I'm feeling OK. The VIX was higher today and that certainly doesn't fit with a market up over 200 points. It is perhaps implying that some selling is due that will be short lived. We'll see. All of the stock indices are overbought and pretty far from their 50 day moving averages. Something has to give. We should at least see a day of pretty good selling next week. It doesn't mean that the rally will end but the overbought conditions need to be relieved. That will perhaps give us the opportunity to purchase some of the gold share calls going out to January. That's the plan for now since the ideal time to purchase has passed. We'll go over the charts as usual this weekend to see if there's anything else that looks promising. Europe higher and Asia generally lower to finish the week. It's Friday afternoon and time for a break.

A mixed bag today as the Dow fell 33 points on good volume. The advance/declines were negative. The summation index is moving up. The overall market was much stronger than the Dow with both the S&P 500 and the NASDAQ posting good gains to new all time highs. Remaining extremely overbought for the S&P 500 and some type of pullback is imminent. But that would only be a bump in the road as higher prices seem to be in the cards for the near future. Perhaps a run up into the November option expiration. The S&P is getting pretty far from its 50 day moving average and that is a condition that cannot last. But we won't try and step in front of the ongoing freight train. Gold rallied back as the futures rose thirty bucks. The US dollar was higher and interest rates were lower. The XAU dropped a point, while GDX shed a dime. Volume was average. Todays gold share price action was the oppostie of yesterday. Underperformance of the gold shares with a $30 rally in gold is not a positive sign. I'm still leaving my open order for the GDX January calls out there though. The inverse potential head and shoulders pattern remains in place. As long as that is the case, the GDX calls still make sense to me. Mentally I'm feeling OK. The VIX was higher today and that doesn't fit with the rise in the overall market. A possible double bottom is forming in the VIX but this indicator doesn't usually lend itself to technical patterns. Still oversold here but not extremely so. We've got the employment report to sift through tomorrow and the markets reaction to it. Nothing seems to be able to derail the flow of money into stocks at the moment. Europe and Asia were both higher overnight. We'll close out the trading week tomorrow.

Up, up and away we go as the Dow rose 105 points on good volume. The advance/declines were 2 to 1 positive. The summation index is moving up. The Fed offered no surprises and stated that it would start to cut back on the liquidity beginning next month. This was already in the market and we rallied after the announcement. Now cutting back on liquidity would normally be an excuse to sell but not today. This is the world we live in, where money is created out of thin air via unregulated cryptocurrencies and the like. Brave new world indeed. The overall market was much stronger than the Dow with the usual new all time highs set. Still short term overbought and staying that way. Not sure how long this will last but probably longer than you think. Gold was down $15 on the futures but came off of the lows. The US dollar was a bit lower and interest rates had a slight rise. The XAU was up 1 1/2, while GDX gained 1/3. Volume was about average. The gold shares are back to outperforming the metal itself and that is bullish in my book. I adjusted up the price I'll pay on my open order for the GDX January calls but it still wasn't filled. Might have missed this trade again but we'll see how things go tomorrow. The potential inverse head and shoulders pattern on the daily GDX chart is still in place. I may just buy the calls ahead of the employment numbers but we'll see. Mentally I'm feeling OK. The VIX was lower and the short term technical indicators here have rolled back over. This implies a continuing rally for stocks. And who's to argue with that? There's no overhead resistance and no sellers to be found. We'll go along for the ride but we are starting to move straight up and that always ends with a corresponding drop. But we can only guess when that would happen. Asia was lower and Europe mixed overnight. We'll see how it goes tomorrow ahead of Fridays jobs report.

It's a rally that won't stop as the Dow climbed 139 points on what lately passes for average volume. The advance/declines were negative. The summation index continues higher. New all time highs for many of the stock indices. The TRAN gained over a thousand points in todays session. Are things getting a little frothy here? It sure seems like it but the market can go higher than you think sometimes. Overbought for a while now and staying there. Will the Fed throw some water on the fire? We'll find out tomorrow. Gold was off $6 on the futures. The US dollar was a bit higher and interest rates remain steady. We should get some kind of movement in rates with the Fed announcement tomorrow I would think. The XAU and GDX had fractional moves lower on light volume. GDX is trying to hold the 50 day moving average and is short term oversold. This would be the time to attempt the calls for GDX but my order doesn't look like it will get filled. I might have to adjust the price higher, which I don't really want to do. I suppose I'll wait and see what happens tomorrow and go from there. Mentally I'm feeling OK. The VIX was lower today but its short term indicators are still pointing up. A rollover of the indicators here and the rally will continue to grow. Again, tomorrow will be an interesting session with the market reaction to the Fed. We'll watch for any suprises. Asia was lower and Europe mixed as the world waits on the Fed. We'll keep an eye on the overnight headlines.

We begin Fed week with a gain of 94 points on the Dow. The advance/declines were around 3 to 1 positive and volume was light. The summation index is moving higher. Yes, we'll get the Fed this week and it's expected that they will announce a tapering of the monthly bond purchases that have gone on since the pandemic began. This isn't exactly bullish news but it already been priced into the market most likely. In the meantime we continue to hit new all time highs in the stock indices and there is no overhead resistance. We remain short term overbought for the S&P 500 as is the case when a rally is underway. There's still plenty of money around to support stocks at the moment. Gold was up around $10 on the futures. The US dollar was lower and interest rates remained steady. The XAU was up 1 1/8, while GDX added 1/8. Volume was light. GDX is trying to hold on to its 50 day moving average. Not yet short term oversold here. I did adjust my open order for the GDX January calls but may need to do so again in order to get filled here. I'm looking at a potential inverse head and shoulders pattern on the GDX daily chart. The key word here is potential because the pattern has yet to be filled out. Ideally GDX would get down to the 31 level and my open order might get filled. The market though rarely cooperates with what anybody wants. Mentally I'm feeling OK. The VIX was slightly higher today which doesn't fit with an up market. We'll see what that means going forward. There will be plenty of market moving material to digest this week as we'll get economic numbers including the employment report along with the Fed. Earnings continue to come out as well. Plenty of time for a trade or two in the November option cycle. Europe was higher and Asia mixed to start the week. We'll see what tomorrow brings.

It was a one day reversal to the upside as the Dow opened lower and closed higher. The most watched index gained 89 points on good volume to finish the month of October. The advance/declines were about even. The summation index is moving up. Earnings came in mixed in the morning but traders used the weakness as an excuse to buy. Several indices hit new all time highs including the S&P 500. There's still plenty of money hanging around to be put into stocks. As long as the liquidity lasts, the rally has legs. There is nothing on the horizon at the moment to stop the bulls. Gold took a hit today as the futures fell around $20. The US dollar had a spike up after yesterdays drop. Interest rates remained steady. The XAU fell 3 7/8, while GDX shed 7/8. Volume was average. The short term indicators for GDX are dropping and there's still some room to go before reaching oversold. Another day like today and my open order for the GDX January calls could get filled. I'll rethink this idea over the weekend. Mentally I'm feeling OK. The VIX bounced around and finished lower today. The short term indicators here are starting to roll back down which would prolong the up trend. This is what I expect to occur. We'll get beginning of the month money flows coming in early next week. Monthly trends look bullish for stocks as well on the candlestick charts. Octobers gains erased Septembers losses. The trend remains up with nothing as of yet to halt the rally. We'll enjoy the ride. We'll be going over all the charts this weekend as usual. Europe and Asia were mixed to finish the week and the month. It's Friday afternoon and time for a break.

Back to the upside as the Dow gained 239 points on average volume. The advance/declines were better than 2 to 1 positive. The summation index is moving higher. Earnings continue to pave the way up as the rally continues. New all time highs for some of the major stock indices and there is no overhead resistance. Money is flowing into stocks. Gold was only slightly higher as the US dollar had a decent drop. Yields were up marginally. The XAU fell 1 2/3, while GDX lost 1/2. Volume was light. The gold shares are starting to underperform now so perhaps my open order for the GDX January calls has a chance to get filled eventually. The short term technical indicators for GDX have started to roll over. Mentally I'm feeling OK. The VIX was lower today and that fits an up market. The pause in prices yesterday was just a temporary stop in the advance according to what I'm looking at. The market is in rally mode on earnings and I don't see that stopping anytime soon. End of the month tomorrow and we might get some swings on adjustments. But the trend is up until further notice and will probably go on longer than you think. That's my opinion at the moment. Asia was lower and Europe mixed overnight. We'll close out the trading for October tomorrow.

Some selling today as the Dow fell 266 points on average volume. The advance/declines were better than 2 to 1 negative. The summation index is still trending up. The Dow was the worst performer today as the NASDAQ only finished flat. The S&P 500 was down but much less percentagewise than the Dow. The short term indicators are trying to roll over for the S&P but remain in overbought territory. Perhaps we will get a shot at the SPY November calls going forward. Some selling is to be expected because we were at overbought extremes. Gold was up a few bucks on the futures. The US dollar was a bit lower and interest rates dropped. The XAU dropped a point, while GDX was off fractionally. Volume was light. The gold shares continue to hold up well. My open order for the GDX January calls remains. Mentally I'm feeling OK. The VIX was higher again today and is relieving its oversold condition. Is this the beginning of a sustained decline? I don't think so. The short term indicators for the VIX have now turned around and are moving up. We'll keep an eye on it but I think a pause in the rally is about all we'll see. I could be wrong. Earnings continue to arrive and they haven't been all that bad. We'll get the first look at the 3rd quarter GDP tomorrow. Europe and Asia were lower overnight. We'll keep an eye out on tonights headlines.

Today the Dow managed a 15 point gain on average volume. The advance/declines were negative. The summation index is moving up. The market did come off of the highs for the day. Pretty much waiting for more earnings reports along with the rest of the weeks economic data including the first look at 3rd quarter GDP. Gold was off around $15 on the futures. The US dollar was higher and interest rates remained steady. The XAU and GDX had fractional losses on light volume. The gold shares continue to out perform the metal itself and that is bullish. I am still interested in getting some January gold share calls if we ever see some type of pullback. The recent advance in GDX has had staying power as the short term overbought condition remains in place. Hoping to see short term oversold at some point between now and the end of the year in order to purchase the January calls. That is the plan at the moment. Mentally I'm feeling OK. The VIX was higher today but remains in a short term oversold condition. It is still suggesting that the rally has plenty of legs and I'm inclined to agree. We may not see an entry point to attempt the SPY November calls. Europe higher and Asia generally lower in last nights trade. We'll see what tomorrow has in store.