Moving right along as the Dow gained 114 points on average volume.  The advance/declines were positive.  The summation index is moving up.  There seems to be no stopping this market.  The technical indicators have been thrown out the window.  We are in a momentum based run higher.  Overbought, staying there and I have written that statement for weeks.  I don't know how long it lasts or what happens when it ends.  My guess is that it won't be pretty but we can enjoy things for now.  Inflation and retail sales data out tomorrow but all ears will be on the Fed statement.  An interest rate rise is already baked into the cake.  GE was off 1/8 and the volume was average.  Gold was down $5 on the futures and the US dollar was a bit higher.  The XAU and GDX had fractional gains.  Volume there was a bit light.  Mentally I'm feeling OK.  No SPY December put trade for me as I cannot step in front of this freight train higher.  I suppose that I'll look out to the January calls if we see some weakness.  But at this rate, selling stocks seems to be a thing of the past.  Interesting times.  I can make a case for this being the 5th leg and final move higher from the lows of 2009 in a 1 through 5 event.  But the last move up can on for quite some time.  That's a guess as usual.  Plus my count and interpretation of things could be wrong.  In the near term you cannot fight the trend up.  Perhaps we'll just keep moving higher into the expiration.  However the weaker breadth moving up shouldn't be ignored.  Eventually the severe overbought technical conditions will come into play.  I just don't know when and will not try and guess the timing.  We'll look for some type of negative divergence before attempting any kind of put trade or short.  Europe and Asia were higher overnight.  We'll see what the Fed has to say on Wednesday and if that propels the Dow to the 20000 level.

The Dow keeps rolling along as it added 39 points today on good volume.  The advance/declines were almost 2 to 1 negative though.  The summation index is still moving up.  The overall market was weaker than the Dow.  That's 2 days in a row of weak internals but the Dow moving up anyway.  That kind of technical action is at least a warning that things could change.  All the short term indicators remain overbought.  I am looking at a short term trade for the SPY December puts but no valid set up has appeared.  With only 4 days to go in the December option cycle, doing this trade would be fraught with risk.  GE gained a few cents on average volume.  Gold finished flat on the session but did come up off of the lows.  The US dollar was weaker today.  The XAU and GDX had very slight fractional gains on average volume.  Mentally I'm feeling OK.  We've got plenty of economic data out this week plus the Fed.  Throw in option expiration and I think we should see some volatility.  The major stock indices remain very overbought despite todays pause for most.  The small stocks got hit today and they can be leaders.  That said, any trade of the SPY puts would have to be a very short term deal.  Not exactly my specialty.  But I'll have to see how things go tomorrow.  Perhaps the wiser idea would be to go out to the SPY January calls.  If we did get some selling this week perhaps that will set up.  For the moment the rally remains intact but the negative breadth is a warning sign.  Europe and Asia were mixed overnight, though Hong Kong had a decent drop.  We'll keep an eye on the overnight developments.

I suppose at this point we can just start calling this a melt-up.  The Dow rose 142 points on good volume.  The advance/declines were barely negative.  The summation index is moving up.  No explanation to this type of price action.  Dow up 142 and the breadth is negative?  Go figure.  Extremely overbought in the near term and still moving higher?  I appears that a run up into the expiration next Friday certainly isn't out of the question.  Hard to attempt a trade when the technical indicators aren't working.  I'm still thinking about the SPY December puts for a short term trade but there is no divergences yet.  It's probably best to just let the December option cycle go by and look to the January calls.  GE was up 1/4 on lighter volume.  Gold dropped a dozen on the futures as the US dollar continues its climb.  The XAU fell 2 1/2, while GDX shed 3/4.  Volume was good.  No positive signs for gold.  Mentally I'm feeling OK.  The rally is overextended by any stretch of the imagination or measurement.  The trouble is that there is no telling just how far up this thing can go.  It defies the normal technical indications to the upside just as it sometimes does on the downside.  So it is hard to say when it will end.  When the indicators stay overbought or oversold for days and weeks, they are of no use.  It simply isn't the normal market environment.  It's tough to trade.  At this rate you could just buy some SPY calls and hope that it continues to go up.  That really isn't a market strategy.  What I will do over the weekend is go over the charts once again and try to figure something out.  It may be dangerous to try and buy the SPY puts next week because that idea just isn't working for those who've tried recently.  However I do think that at some point next week it will.  It is a historically weak time period for the market and perhaps the Fed tightening will bring some sellers.  They have been absent for weeks.  But I'll have to peruse the charts first.  For now it's Friday afternoon and time for a break.

The beat goes on as the Dow added 65 points on good volume.  The advance/declines were positive.  The summation index continues higher.  At this point you have to begin to wonder just how long this will continue.  All the short term technical indicators are very overbought without any relief.  Plus they have stayed that way for weeks.  It's as if the indicators don't matter anymore.  It is simply buy, buy, buy.  Day after day.  Perhaps we'll just keep running up into the option expiration but that isn't until next week.  I'd like to try the SPY December puts for a short term trade but at this rate, there is no way to find the proper entry point.  GE was off a few cents and the volume was average.  Gold was flat on the futures despite a decent gain for the US dollar.  The XAU and GDX were flat on very light volume.  Mentally I'm feeling OK.  The ECB extended its bond purchase program but at a lower rate.  The stock market shrugged.  It is a runaway freight train for US stocks at the moment.  No sellers or overhead resistance.  I certainly don't know how long this will last.  The VIX has risen the past couple of days but stocks have surged anyway.  Part of me wants to just get some SPY calls but there is no technical justification to do so right now.  I can make a case for the SPY puts but only if we get some kind of negative divergence in the indicators.  Hasn't happened yet.  So patience is advised for now.  Europe and Asia were generally higher overnight.  We'll finish out the week tomorrow.

Powering to the upside as the Dow climbed 297 points on heavy volume.  The advance/declines were a bit over 3 to 1 positive.  The summation index is moving higher.  Overbought, staying there and there is no overhead resistance.  Sellers are gone.  I did not get any of the SPY December calls but that idea was valid.  I've asked myself how long can this go on and I guess the answer is longer than you think.  I'm looking for the next trade and perhaps the SPY December puts might be in order for a short term trade on a valid signal.  However the primary trend is up and it usually doesn't pay to go against that.  GE was higher by 3/8 on average volume.  Gold rose $5 on the futures as the US dollar was lower.  The XAU and GDX had slight fractional gains on weak volume.  The fundamentals remain bearish for gold.  Mentally I'm feeling OK.  Quite a run we've had since the election and it appears there is no stopping this bull move.  We'll see profit taking at some point but I do not look for an extended downturn anytime soon.  The latter half of December is generally bullish for stocks.  I will look for a short term top next week and perhaps trade it if we get some kind of negative divergence.  However it is possible that the more prudent trade would be to go out to the SPY January calls.  I do somewhat lament not being able to profit from the current move.  But at least the hypothesis of the market was correct and having a handle on things plays out to the positive in the long run.  Seven days left in the December option cycle.  I have to say after today that the prices are so overextended, some type of consolidation is necessary.  A pause is due and sooner rather than later.  I'll be looking for a short term signal to try the SPY December puts between now and expiration on the 16th.  Europe and Asia were both higher again overnight as money pours into stocks around the world.  We've got the ECB to deal with tomorrow but I don't expect any surprises.  We'll keep an eye on the overnight action.

A drift higher today as the Dow was up 35 points on good volume.  The advance/declines were better than 2 to 1 positive.  The summation index is moving up.  The overall market was stronger than the Dow again and that's bullish.  We're going higher and there isn't anything that I can see on the horizon to derail this trend.  There are no sellers for now.  It does not appear that the SPY December call trade will happen.  I can only remain patient and look for the next opportunity.  Running out of time in the December option cycle and then we have the holidays to contend with.  I suppose that I'll be trying to get long at some point.  GE was up a few cents on pretty light volume.  Still more overbought than oversold here.  Gold was off $6 again on the futures as the US dollar bounced back.  The XAU and GDX had slight fractional losses on extremely light volume.  Mentally I'm feeling OK.  Not much else to report as we continue to move up.  The Dow and the TRAN have remained short term overbought for weeks.  It's hard to trade against that trend.  Major stock indices are moving above near term resistance, so there is no telling how long this will go on.  It has already lasted much longer than normal.  We never did get back to mid-range on the technical indicators for the S&P but we did have a slight decline and now have moved up off of that.  All I can do is wait for some better downside before trying the SPY calls again.  But it really doesn't look like that will occur.  Perhaps there will be a short term trade to try around the Fed meeting but that's not until next week.  Plus I'm not that good at the short term trades.  So it remains a watch and wait time for me.  Europe and Asia were higher overnight.  We'll see what tomorrow brings.

There was a gap up at the open and we never looked back as the Dow gained 46 points on good volume.  The advance/declines were better than 2 to 1 positive.  This should move the summation index back up.  The overall market was stronger than the Dow.  There was no opportunity to purchase the SPY December calls.  Only weakness in the coming days will save doing this idea but that is unlikely.  The timing would have to be near perfect as well since we are running out of time in the December option cycle.  My guess is that we will continue to move higher from here.  The vote in Italy turned out to be a non event for the market.  GE was off 1/4 and the volume was light.  Gold was off about $6 on the futures despite some weakness in the US dollar.  The XAU added 1/2, while GDX was flat.  Volume was to the light side.  Mentally I'm feeling OK.  The only way to try the SPY December calls from here would to see some decline tomorrow or Wednesday.  The timing would have to be spot on.  We are in the zone where the time premium gets sucked out of the options at a significant rate.  That is hard to overcome if the entry isn't good.  You simply don't have time to let the trade work itself out.  I'm still a believer in higher prices going forward.  So we are simply going to have to wait and see if the next couple of sessions play out in our favor.  If not, it's on to the next thing, whatever that trade may be.  Asia was lower and Europe higher overnight.  There isn't a lot of economic data to trade off of this week.  We'll stick with the technicals and keep an eye on things tonight.

It was kind of a wait and see type of market today despite the employment report.  The Dow dropped 21 points on average volume.  The advance/declines were positive and the overall market was a bit stronger than the Dow.  The summation index is moving sideways for now.  The jobs report was pretty much in line with expectations and we got a small rally from that.  But there's really no conviction either way for stocks at the moment.  I think that we're waiting for the referendum vote out of Italy on Sunday before we get going anywhere.  I did place an order for the SPY December calls but it wasn't filled.  I'll try again on Monday if I get the chance.  GE was off a nickel and the volume was light.  Gold found some buyers on Italy angst and the futures rose almost ten bucks on the futures.  The US dollar was a bit lower.  The XAU went up 3 points, while GDX added 3/4.  Volume was good.  Mentally I'm feeling a bit tired.  I still think that we go higher from here and will be once again look to buy weakness on Monday.  The S&P 500 has come off of its highs and is short term oversold on one of my indicators.  We aren't even mid-range yet on most of the technical indicators here but if we get an Italy led sell off on Monday we'll be there.  That would be the ideal scenario for my case to purchase the SPY December calls.  Weakness Monday morning would be all I need to see.  However we could simply rally at the open as well.  Like I said before it is a wait and see game at this point.  I do still like the idea that price and volume lead the way.  I'm looking for new all time highs again before the year is out for the S&P.  All there is to do now is go over the charts this weekend, monitor the vote in Italy and the market reaction on Sunday night.  For now it's Friday afternoon in December and time for a break.

A mixed bag once again as the Dow rose 68 points on very heavy volume to begin the month of December.  The advance/declines were negative and the overall market was much weaker than the Dow.  This is a trend that is not positive.  The summation index may start to move sideways after todays price action.  The big caps leading the way is not the most bullish of scenarios.  I'm still looking at the SPY December calls though as we are getting to mid-range on the short term indicators.  If the rally is for real and I do believe that it is, then buying any weakness tomorrow should work out for that trade.  That is my game plan right here.  If we see weakness after the employment report, I'll be purchasing the calls.  GE was up almost 2/3 on good volume.  There is now a bullish engulfing pattern on the GE daily candlestick chart.  Gold was flat on the session but did come up off of its lows.  The US dollar fell for a change today.  The XAU and GDX had fractional losses on average volume.  Mentally I'm feeling a bit tired.  The recent drop this week in the small caps could prove ominous if it continues.  However I still think that a move back to the 2180 level in the S&P 500 would be an opportunity to get long for the December option cycle.  Perhaps my thinking is wrong here but that is the trade that I'm looking at.  Of course the market could just start to head higher at the open and that would probably doom the trade.  So we'll have to keep an eye on what happens tomorrow morning.  Asia was higher and Europe lower overnight.  Interest rates have risen dramatically since the election and the stock market hasn't really paid much attention.  At some point it will and then there will be trouble for the bulls.  It has been said that the money from selling bonds is going into stocks.  Some of that is probably true but when only a few Dow stocks are going up vs. the rest of the market, there isn't the wholesale buying that you should see from such an occurrence.  I don't normally talk about interest rates but they do effect the stock market at times.  Sooner or in this case later, higher rates will take their toll on the market.  They're having little effect at the moment.  Asia was higher and Europe lower overnight.  We'll see what happens with the jobs numbers tomorrow and the markets reaction to them.

We finished the last session of the month mixed as the Dow added 2 points on very heavy volume.  The advance/declines were negative and the overall market was much weaker than the Dow.  The summation index is still moving up.  OPEC has decided to cut oil production and the Fed beige book was in line with what was expected.  Technically speaking the short term indicators have rolled over but are not at mid-range yet.  At this rate I may have to wait for the employment report to come out before getting into a position on the SPY.  We also have a potential market mover in the Italian election on December 4th, which is a Sunday.  So there is plenty to consider in an attempt to get the SPY December calls.  GE was off almost 1/3 and the volume picked up to the downside.  Could GE be a precursor to lower prices?  Gold was off $15 on the futures as the US dollar rose again.  The XAU lost a point and GDX shed 3/8.  Volume was average.  Mentally I'm feeling OK.  The VIX picked up today but I do not think that it is the beginning of some kind of big down trend.  Perhaps a move back to the breakout level of around 2180 for the S&P 500 at the most.  That's my view at the moment.  I still favor the SPY December calls in the coming days.  I may place an open order overnight.  There are some near term unknowns concerning the jobs numbers and the situation in Italy.  But once we get through that, I don't see any major obstacles to higher prices.  I could be wrong.  One thing that is a concern is that the small stocks are not in the lead higher here and it's just the opposite.  The Dow leadership is usually a late in the rally type of action.  But for now I'm giving the benefit of the doubt to the recent rise in prices.  The volume has been really good and the small stocks have led the way up until now.  The rising summation index is also a positive.  Europe and Asia were generally higher overnight but not by much.  We'll move on to the month of December tomorrow.

Just hanging around today as the Dow fell off of its highs for the session.  The most watched index rose 23 points on OK volume.  The advance/declines were barely negative.  The summation index is moving up.  Still on the overbought side for the short term.  Perhaps we'll get a chance to purchase some calls on Thursday, if the short term decline continues.  Otherwise I'll have to take a wait and see approach.  There's still room to go lower here as most stock indices are still pretty far above their 50 day moving averages.  The prudent course of action would be to wait for a fall back towards those averages before attempting the SPY December calls.  GE was off 20 cents on average volume.  No hurry to do anything here.  Gold barely budged on the futures and the US dollar was off a bit.  The XAU and GDX had fractional losses on lighter volume.  Mentally I'm feeling OK.  End of the month tomorrow.  There's an OPEC meeting on the docket.  Plus the Feds beige book.  Not sure what that will bring but trying to remain patient for now.  I still think that the rally has legs, it is just a matter on the timing for getting long in the December option cycle.  Not an easy task to be sure.  But one that should be profitable if I can pull it off.  So we'll wait and see.  Asia was mixed and Europe generally higher yesterday.  We'll keep an eye on the overnight developments.

The week begins with a thud as the Dow fell 54 points on average volume.  The advance/declines were around 2 to 1 negative.  The overall market was weaker than the Dow.  The summation index continues higher though.  The market could not go up in a straight line forever.  I think that any pullback can be bought at this stage.  If we are weaker into Thursday, I'll be looking at the SPY December calls.  The short term technical indicators remain overbought but if we get back to mid-range on them I'm a buyer.  I'd probably like to be long going into the employment report if the market cooperates.  GE was off about 20 cents on light volume.  Overextended here as well.  Gold rose almost $15 on the futures as the US dollar was a bit lower.  The XAU was up 2 1/2, while GDX gained 3/4.  Volume was good here.  I don't think this is the start of anything serious to the upside but I've been wrong before.  However the fundamentals do not favor gold at the moment.  Mentally I'm feeling OK.  We've had quite a post election rally and today is really the first negative session for all of the stock indices.  We opened lower and stayed that way for much of the trading day.  Could the rally be over?  perhaps in the short term but I do believe that this advance has legs.  Unless the summation index turns around, I'm looking for higher prices going forward.  It will be tricky because I don't think the indicators will get to all the way oversold, as they did on the last trade.  However we will keep a close watch on things as they develop this week.  The ideal scenario of a clear signal probably won't show up before this trade needs to be entered.  I'm pretty confident of higher highs before the December expiration.  Asia was mostly higher and Europe lower overnight.  We'll see what transpires overnight.

A very light volume levitation for the day after Thanksgiving as the Dow rose 68 points during the shortened session.  The advance/declines were almost 2 to 1 positive.  The summation index continues to move up.  No overhead resistance and we'll just have to see how far it goes.  Overbought, staying there and due for some kind of rest at some point.  Where that point develops is anyones guess.  GE was up a dime on the same listless volume.  Gold was basically flat as the US dollar was off a bit.  The XAU and GDX had slight fractional gains on anemic volume.  Mentally I'm feeling a bit tired, did not sleep well.  New all time highs in many indices on a daily basis now.  Not a lot of press or media about it here so the rally can continue.  When everybody is talking about how great stocks are will be the warning sign to head for the exits.  We aren't there yet.  I'll continue to look and hope for some decline to try the SPY December calls.  However at the rate things are going, I may just have to remain on the sidelines.  3 weeks to go in the December option cycle.  Plenty of economic data due next week including the jobs report.  End of the month as well with the Feds beige book.  Enjoy the rest of the long weekend.

Still moving higher as the Dow gained 59 points on light volume.  The advance/declines were barely positive.  The summation index is moving up.  The overall market was weaker than the Dow, with the NASDAQ lower on the session.  But as I said before, it won't matter because we are on a ride to higher prices.  Still overbought on the short term indicators with no signs of rolling over.  It's a holiday week rally and there is no overhead resistance for the Dow and S&P.  GE was up over 1/8 on light volume.  The same overbought conditions are in place here.  Gold fell below the $1200 level as the futures dropped over twenty bucks.  The US dollar was higher.  The XAU lost 3 points and GDX shed a point.  Volume was heavy.  It appears the theme since the US election has been dump gold and bonds.  At the same time buy stocks and the US dollar.  Mentally I'm feeling OK.  No break in the rally and the idea for getting some SPY December calls seems as though its time has passed.  No point in chasing this rally now.  Perhaps the best idea is to take a break now that Thanksgiving is here.  Friday will be a light volume shortened session that will probably have an upward bias.  There will still be 3 weeks to go in the December option cycle when things return to normal on Monday.  Asia was slightly higher and Europe slightly lower overnight.  Have a Happy Thanksgiving everyone.

Up and away we continue to go as the Dow gained 67 points on good volume.  The advance/declines were over 2 to 1 positive.  The summation index is heading higher.  There is nothing to stop this incredible rally that began the day after the US election.  The overall market was a bit weaker than the Dow but that won't matter.  We closed above a couple of milestones.  19000 for the Dow and 2200 for the S&P 500.  Tomorrow should be a get away day before the Thanksgiving holiday.  GE was up 1/3 on light volume.  Overbought and staying there remains the theme here.  Gold was up a couple bucks on the futures and the US dollar was a bit higher as well.  The XAU and GDX were slightly higher on very light volume.  I do not see any imminent rally for the precious metals complex.  Sideways is the most we can hope for here.  Mentally I'm feeling OK.  At the rate we are going, there won't be a chance for the SPY December calls.  I do not want to chase this rally at this point.  Patience is required but we must be open to the possibility that we are waiting for an opportunity that will never arrive.  The next trade could wind up being in the opposite direction.  For now we'll wait and see if we get any kind of return for the technical indicators to at least mid-range.  Or a move towards the 50 day moving average at the very least.  Price and importantly volume tell you that the move up is for real.  It is much easier of course to trade with the trend.  Whether or not we get a chance to is the question.  Europe and Asia were both higher overnight.  Expect a muted session tomorrow.

Onward and upward as the stock market rally continues.  The Dow rose 88 points on average volume.  The advance/declines were 3 to 1 positive.  The summation index is moving up.  Overbought, staying there and hitting new all time highs as we go.  The stock market remains strong and there is no pullback to get long.  The fact that hitting new all time highs isn't even press worthy lets you know there is plenty of room to go on the upside.  I'm still looking at the SPY December calls if I get the chance.  Doubtful at this point.  GE was up 20 cents on light volume.  Gold was up $3 on the futures as the US dollar was lower for a change.  The XAU added 1 3/4, while GDX gained 3/8.  Volume was light.  The gold shares continue in the down trend that began in August.  Mentally I'm feeling OK.  A holiday week and buying is in vogue.  There is no overhead resistance.  We're over extended any way you measure it.  I certainly don't want to chase things here but what can you do?  I'm probably going to let this week pass unless we get a sharp drop, which I don't expect.  We should drift higher into Thanksgiving and then add a bit on the short Friday session.  Money is flowing into stocks.  We don't need to know the reasons we just need to pay attention and attempt to profit from it.  Europe and Asia were generally higher overnight.  I don't expect much volatility leading into the holiday.  We'll be watching things as usual though.

Friday of expiration week finished lower as the Dow fell 34 points on average volume.  The advance/declines were slightly negative.  The summation index is heading higher.  Lackluster trading to be sure as perhaps the holiday mode has begun early.  I'd still look to get long if we continue lower in the near term.  A pause to relieve the overbought condition would be healthy when it comes to moving forward later in the December option cycle.  Wishful thinking on my part and it hasn't happened yet.  GE was off 1/8 and the volume was light.  Gold fell almost ten bucks on the futures as the US dollar continues its climb.  The XAU and GDX had fractional losses on lighter volume.  No love for gold in this environment.  Mentally I'm feeling a bit tired.  It's been quite a run since the US election and I don't think anybody saw a rally of this magnitude occurring in such a short time.  The market really could use a breather.  The Thanksgiving holiday week is coming up and I expect slow trading to follow.  It will probably be a time to get ready for the end of the month and the beginning of December.  I'll be keeping an eye out for the SPY December calls as I don't foresee any obstacles at the moment to the levitation in stocks.  If we can get the short term technical indicators back to mid-range, that would be enough in my opinion to try the calls again.  We'll see.  Asia was mixed and Europe lower last night.  I'll be checking the charts over the weekend but I can already tell you that they remain overbought on the major stock indices.  Patience is most likely the trait that will be required at the moment.  For now it's Friday afternoon and time for a break.

Moving up again as the Dow rose 35 points on what now passes for average volume.  The advance/declines were slightly higher.  The summation index is heading higher.  Overbought and staying there.  The overall market was once again stronger than the Dow and that's a positive.  We are going higher, it just won't be as fast as we've seen.  Any decline can be bought.  There is nothing to derail the momentum at the moment.  Option expiration tomorrow before a holiday week.  I expect another day of gains.  GE was up a nickel on very light volume.  Gold was off $6 on the futures as the US dollar continues to climb.  The XAU fell 1 2/3, while GDX shed 1/2.  Volume was good.  The gold shares are about to experience the death cross, with the 50 day moving average going below the 200 day moving average.  The fundamentals and the technicals do not favor the gold shares here.  Mentally I'm feeling OK.  I did not do the short term SPY November call trade, as I was not nimble enough to pull it off.  The idea turned out to be solid though.  I am considering the SPY December calls if we do see some type of decline soon.  But that may never come.  The strength of this run up has been exceptional, as the volume indicates.  I think that everyone is looking for a pullback to purchase.  Thanksgiving week is generally slow but bullish, so there probably won't be an opportunity there.  I suppose I'll simply have to remain patient and wait for a decent set up.  Europe and Asia generally had slight gains in overnight trade.  We'll close out the week with options expiration Friday tomorrow.

Taking a breather as the Dow fell 55 points on lesser volume.  The advance/declines were slightly positive.  The summation index is heading up.  The overall market was stronger than the Dow, with the NASDAQ higher on the session.  We were overdue for some profit taking or decline and got that today.  I'm still considering a short term trade with 3 days to go on the November option cycle but will probably hold off.  I'm considering the December SPY calls as well.  We remain overbought on the short term indicators.  I do look for higher prices going forward though.  GE was flat on the day with light volume.  Gold didn't do much today as the US dollar continues to climb.  The XAU and GDX had fractional losses.  Volume was light.  Mentally I'm feeling OK.  It has been quite a run for stocks but I would expect them to take a rest here with a holiday week coming up.  If we can get the short term technical indicators to come off of their overbought condition perhaps we'll see an entry point for a SPY December call trade.  As for trying another SPY November call trade with 2 days to go, we'll have to see weakness in the morning tomorrow and go from there.  The risk would be very high to try that trade but I might.  I expect stocks to finish the week higher.  Plus we could see some more of the positive expiration week bias.  Once again, the short term trades are not my greatest strength.  Asia was mixed and Europe lower overnight.  We'll keep an eye on the overnight developments and see what tomorrow brings.

The rally rolls on as the Dow gained 54 points on heavy volume.  The advance/declines were well over 2 to 1 positive.  This will turn the summation index back up.  We should hit a new all time high in the S&P 500 at some point this week and it could be tomorrow.  Short term overbought and staying there for the technical indicators.  Any sustained weakness, if we get some, can be bought in my opinion.  Price and volume tell the story and things are looking pretty bullish at the moment.  The economic data came in as expected.  Despite all that, I did sell my SPY November calls today.  The 2 days prior to today took out most of the volatility premium and with only 3 days to go the risk of holding on wasn't worth it to me.  I do think we could go higher tomorrow but we could just as easily pause.  That would lead to a decline in the calls that I was not willing to risk.  The profit was over 100%.  As crazy as it sounds, I may try these calls again if we see some weakness tomorrow and the very short term technical indicators drop.  But that remains to be seen.  GE was up 1/4 and the volume was good.  I'm considering the January calls here if we get some pullback to the downtrend line that was broken.  Hasn't happened yet and it may not.  Gold was up a couple backs on the futures and the US dollar was slightly higher.  The XAU gained 3 1/2, while GDX rose 7/8.  Volume was good.  Maybe some bargain hunting here but there is no assurance that the decline has ended for gold and the gold shares.  Mentally I'm feeling OK.  This rally is incredible by any standard.  Just as prices don't go down forever in a straight line, they don't go up forever either.  We could simply move higher into the expiration but I do think we'll get some kind of at least short term decline in the next 3 days.  I could be wrong.  The market stays overbought longer than when it is oversold.  So we'll have to see what happens.  I might try a very short term call trade on weakness but the short term stuff is not usually my strong point.  At any rate, the medium term picture is bullish as well and with the summation index heading higher now the trend will remain higher for an extended period of time.  That's my guess at the moment.  Slight moves and generally positive last night for the overseas markets.  We'll see how it goes tomorrow.