Sellers remain in control as the Dow fell 316 points on average volume. The advance/declines were around 3 to 1 negative again. The summation index is moving down and we will take our cues from that. It has been an orderly decline thus far as panic has yet to arrive. The inflation data for producer prices came in about where expected. The Dow, NASDAQ and S&P 500 all dropped the same percentage. The short term indicators for the S&P continue to fall and are short term oversold now but not completely. The S&P has broken its up trend line along with closing below 7600 and its 50 day moving average. I suppose tomorrow will tell the story if we are headed for a steeper decline or perhaps if the inflation data is OK, some kind of bounce. We have missed the SPY September put trade it appears. Gold was down $96 on the futures. The US dollar was higher and interest rates jumped. The XAU lost 14 2/3, while GDX dropped around 3 1/3. Volume was average. The short term indicators for GDX are still heading lower with room to go. I still like the idea of the GDX calls at some point before option expiration. I might even place an order for them overnight in case the inflation number comes out hot and stocks tank early in the morning. But next week might be a better time to purchase. There is also the possibility that things fall apart for the market here and gold goes along for the ride. Which would make purchasing any calls the wrong strategy. There will be a lot of risk in taking on any trade now as we are running out of time in the September option cycle. Mentally I'm feeling OK. The VIX was up again but stopped at its 200 day moving average. The short term indicators here are now overbought. Still below the 20 level. If the VIX stays overbought there will be more downside in the markets to go. That usually doesn't happen though. Interesting times but caution is advised. Asia was mixed and Europe lower overnight. We'll see how the inflation data reads and go from there.

No buyers to be found as the Dow fell 405 points on average volume. The advance/declines were around 3 to 1 negative. The summation index is moving down. The Dow continues to lead the way lower which isn't the usual case. Producer prices out tomorrow and it probably won't be good news but who knows? More weight is attached to Fridays consumer price gauge so we should see some fireworks in the marketplace then. Too late for the SPY September puts at this point unless the market goes into free fall. The S&P 500 has now barely broken through the up trend line on the daily chart that began in April. The short term indicators there are still moving down. There remains some support at the 7600 level but the mood lately has been negative and sellers have control for now. Gold was up a couple bucks on the futures. The US dollar finished flat and interest rates continue to rise. The XAU was up 4 1/2 and GDX rose a point. Volume was light. The short term indicators for GDX are now stalling at the mid-range level. I still like the idea for the GDX September calls at some point before next weeks option expiration. However we don't have a clear technical signal one way or the other at the moment. We do not want to guess what will happen ahead of two days of inflation data. Mentally I'm feeling OK. The VIX continues higher and the short term indicators are moving up. Not yet overbought here so more near term selling is not out of the question. Still well below the 20 level though. We sit on the sidelines for now as we look back and see that the big rally out of nowhere last Thursday was the time to try the September SPY puts. The thought did cross my mind but we had not seen a prior big decline ahead of it which is usually how it works. I will keep my eyes open for some type of trade before next Friday though. Asia and Europe were down overnight. We will keep an eye on the evenings news.

The Dow got crushed today as it fell 628 points on average volume. The advance/declines were shy of 2 to 1 negative. The summation index continues to trend lower. We did get a signal from the McClellan oscillator on Friday for a big move within the next two sessions and the Dows move lower today takes care of that. Both the NASDAQ and S&P 500 fell to begin the week but certainly not as much as the Dow. The NASDAQ dropped the least and the bulls will point to that. Many of the short term indicators for the S&P 500 are moving lower. The S&P now sits on the up trend line that began in April on the daily chart. We are at the moment of truth here. I still like the idea of the SPY September puts but it just might be too late. Inflation data on Thursday and Friday but it looks like the market isn't going to wait for that. I may place an order overnight for the SPY puts in case things reverse tomorrow. Gold was off $71 on the futures. The US dollar was lower and interest rates ticked up. The XAU dipped 1 2/3, while GDX slipped around 3/4. Volume was light. The short term indicators for GDX are turning lower. I do have an idea for the GDX September calls but will have to see what happens this week before taking on that trade. It would be a pretty risky one with time running out in the September option cycle but it will be based on the technical condition for GDX ahead of the Fed next week. Mentally I'm feeling OK. The VIX was up today which fits the down market. The short term indicators here have turned back up with room to go. Still a low reading for the VIX but the gap up today could spell trouble for the bulls. Asia was lower and Europe little changed overnight. We'll see how it goes tomorrow.

The employment report was much stronger than expected but stocks didn't enjoy that news as the Dow fell 272 points on light volume. The advance/declines were about even. The summation index is stalling here. Will it turn around with a stock rally or roll back over with a market decline. Always plenty of questions with no clear answers ahead of time in this game. The Dow led things lower and that's not the most bearish scenario. The short term indicators on the S&P are now mixed. I'm waiting to see if we can move higher ahead of the inflation data next week to try the SPY September puts. No clear signal either way as of now but I'll be checking things over the long holiday weekend. Gold lost $58 on the futures. The US dollar was higher and interest rates were up slightly. The XAU fell almost 7 points and GDX lost 2 1/4. Volume was average. The short term indicators for GDX took a step back today. Not sure if I'm going to trade the GDX options ahead of the data next week but might try them the following week with the Fed meeting. There really isn't a clear signal here either right now. Only nine days left in the September option cycle. Mentally I'm feeling a bit tired. The VIX was up slightly today but remains at a very low level. The short term indicators here are oversold but not completely. Not sure what comes next for the VIX. Plenty of time this long weekend to go over the charts and get a game plan for next week. All the players should be back on Tuesday. Asia was higher and Europe mixed to close out the week. It's Friday afternoon and time for a break.

A good day for the bulls as the Dow climbed 624 points on light volume. The advance/declines were positive. The summation index is beginning to stall. The NASDAQ led the way higher. I had expected perhaps a quiet session ahead of tomorrows jobs report but that was not the case. Probably some short covering in there with the buyers. The short term indicators for the S&P 500 are moving up. If we continue to rally from here, new all time highs could be on the table for next week. I am still considering the SPY September puts though if things line up for that idea ahead of the inflation data due out late next week. However we also have to consider that the support at 7600 on the S&P held up and the up trend line that started in April is still intact on the daily chart. Gold took off to the upside as the futures gained $105. The US dollar fell sharply and interest rates dipped. The XAU added 12 1/4, while GDX was up 3 7/8. Volume was good to the upside. The short term indicators for GDX have turned around from the mid-range level. I canceled my open order for the GDX September calls as it appears that GDX is not going to get completely oversold as I had hoped. Another missed opportunity but we will wait and see if GDX can get above the recent highs. Mentally I'm feeling OK. The VIX was lower which fits an upside day for stocks. The short term indicators here are heading down but not yet completely oversold. Not sure what to expect with the market reaction to the jobs report but if today is any indication stocks will most likely continue higher. Asia lower and Europe higher overnight. We'll close out the trading week ahead of a long weekend tomorrow.

Some buyers returned to action today as the Dow was up 295 points on light volume. The advance/declines were positive. The summation index is still heading lower. The Dow led things higher and that isn't the most bullish outcome. We had a rally early on and then traded sideways for the rest of the session. The S&P 500 is still above the support at 7600. Its short term indicators are trying to turn back up. My guess is that we'll be in a holding pattern tomorrow ahead of Fridays jobs report. Gold was up $36 on the futures. The US dollar was a bit lower as were interest rates. The XAU was up 11 3/4 and GDX added almost 3. Volume was average. The short term indicators for GDX are beginning to stall at the mid-range level. I did place an overnight order for the GDX September calls but it will take more of a drop in GDX for it to get filled. But I do have to wonder if this is the place for that trade if the mid-range level on the indicators proves to be support. The trading is never easy. Mentally I'm feeling OK. The VIX was lower today and some of its short term indicators have turned back down. The daily candlestick chart here now looks like it wants to go lower. Not sure what's next for the VIX. Simply waiting for the employment report at this point unless some overnight news gets things going early tomorrow. A long weekend on the horizon but everybody should be back at their desks by Tuesday. Asia and Europe closed lower overnight. I'll keep watch on the overnight developments.

Heading down as the Dow fell 419 points on light volume. The advance/declines were better than 2 to 1 negative. The summation index is moving lower. The NASDAQ led things down and that is not a plus for the bulls. The S&P 500 had a decent drop and the short term indicators here are now more oversold. It remains above the support at 7600. It appears that it is too late for the SPY September puts but you never know. Gold fell $107 on the futures. The US dollar was higher along with interest rates. The XAU lost 15 3/4, while GDX shed 3 3/4. Volume was good to the downside here. The short term indicators on GDX are moving down but are not yet short term oversold. When it gets there we will most likely try the GDX September calls. That is the plan at the moment. Mentally I'm feeling OK. The VIX moved higher today and that fits with a down market. The short term indicators here are moving up but not yet overbought. Still far below the 20 level on the VIX. With the summation index moving down the path of least resistance is lower. The key is what happens at 7600. There is support from previous tops along with the near term up trend line that began in April. We should know what happens by the end of the week. Asia and Europe were lower overnight. I'll keep an eye on tonights headlines.

Lower to start the week on the last day of August as the Dow fell 374 points on good volume. The advance/declines were negative. The summation index is moving lower. The NASDAQ and S&P 500 posted small losses. The Dow leading the way down isn't the worst possible scenario. The short term indicators for the S&P appear to be rolling over in oversold territory though. Near term support on the S&P is still at around the 7600 level. Gold was off $26 on the futures. The US dollar was lower and interest rates were higher. The XAU fell 5 1/2, while GDX slipped 1 1/8. Volume was light. The short term indicators for GDX are still trending lower with room to go. I am still looking at the GDX September calls but will wait for now. Getting back to short term oversold on the gold shares before option expiration would be the ideal time for this idea but markets rarely cooperate. I am also in favor of the SPY September puts at some point unless things simply unravel from here. The volume was better today so perhaps players are back at their desks ahead of Labor day. Or it could just be the result of the end of the month squaring. The VIX was higher today which fits a down market. Its short term indicators are trying to turn back up. That would not bode well for stocks if it happens. Plenty of economic data out this week highlighted by the jobs report on Friday. Europe and Asia were generally lower to begin the week. We'll see how the market starts the month of September tomorrow.

An up and down session to end the week that finished mostly lower across the board. The Dow only fell 9 points on light volume. The advance/declines were negative. The summation index is still trending lower. The Fed chairman spoke and the market sold off. The NASDAQ led the way down. The short term indicators for the S&P 500 are starting to roll over. We still like the idea of the SPY September puts. But will everybody be back at their desks next week or do we have to wait until after Labor day? No clear signal that I can see on what happens next. Gold got slammed and the futures fell $158. The US dollar jumped and interest rates were higher. The XAU lost 15 1/3 and GDX shed 4. Volume was heavy to the downside. The short term indicators on GDX have begun to move lower but are still on the overbought side of the ledger. The question is whether or not this is the opportunity to try the GDX September calls. We'll consider the answer over the weekend. Mentally I'm feeling OK. The VIX was a touch lower today which doesn't fit with a down market. Some of the short term indicators here are beginning to turn sideways. Yesterday the VIX looked like it wanted to go lower but now the picture isn't as clear. What is clear is that the breadth remains lousy and the NASDAQ has yet to confirm the other averages recent new all time highs. I'll be going over the charts as usual this weekend. Europe and Asia were higher to end the week. It's Friday afternoon and time for a break.

Moving higher as the Dow rose 105 points on light volume. The advance/declines were negative. The summation index is still in a sideways channel. The NASDAQ led the way higher thanks to the NVDA outlook last night. The S&P 500 jumped 55 points. The short term indicators there are now moving higher. My guess is that we are about to test the all time highs again. However the recent volume has been light and the breadth has not been that positive. I still like the SPY September puts at some point. The Fed chairman will be giving a speech tomorrow and that could impact prices. Gold was up ten bucks on the futures. The US dollar finished unchanged and interest rates were barely higher. The XAU added 4 1/4 and GDX was up 1 1/4. Volume was light. The short term indicators on GDX are still traveling in overbought territory. Mentally I'm feeling OK. The VIX was down today and the short term indicators here are heading lower. The daily price chart and indicator movement for the VIX looks like it wants to go lower which would be positive for stocks. For the most part Asia and Europe finished lower overnight. We'll close out the week tomorrow.

Slightly lower today as we got more of the same going nowhere market price action. The Dow slipped 113 points on light volume. The advance/declines were slightly negative. The summation index is heading sideways. The inflation data came in about where expected and did not have much effect on prices. Perhaps the after the close NVDA earnings will get things moving. Most of the short term indicators for the S&P 500 remain oversold. Lighter volume reflects the lack of all the players being in the game at the end of summer. We will most likely let this week pass and go from there. Gold finally took a breather with the futures off $46. The US dollar was higher and interest rates finished flat. The XAU lost 11 3/4, while GDX dropped 3 1/8. Volume was average. The short term indicators for GDX have turned down but remain overbought. We would need to see more of a decline here for GDX before we consider the September calls. Mentally I'm feeling OK. The VIX was a bit lower today which doesn't fit with a lower market. The short term indicators on the VIX are now at mid-range so it could go either way from here. Combine that with a sideways S&P 500 for the past week and you get the picture. So we will sit things out until we have a better picture of things one way or the other. Asia and Europe were generally positive overnight. I'll keep an eye on the overnight developments.

Higher across the board today as the Dow rose 160 points on light volume. The advance/declines were positive. The summation index is beginning to turn sideways. The NASDAQ led the way up today and that is a plus. There was a gap higher at the open and then the market traded sideways for the rest of the day. We once again got a signal last night from the McClellan oscillator for a big move within the next two trading sessions. This signal has not worked lately but we'll see if it can tomorrow. Some of the short term indicators for the S&P 500 have turned up in oversold territory. Perhaps the inflation data tomorrow can spur some kind of activity. NVDA earnings will be released after the close. Gold was up $24 on the futures. The US dollar was a bit lower and interest rates dropped. The XAU was up almost ten points and GDX added two. Volume was a bit above average. Gold and the gold shares continue to attract capital. The current rally is relentless. There are no pullbacks to try the GDX September calls. The short term indicators for GDX remain extremely overbought. We certainly will not chase it at this point. Mentally I'm feeling OK. The VIX was lower today which fits an up market. However some of the short term indicators on the VIX continued to move up. I'm not sure what that means, if anything. Curious movement though. Remaining on the sidelines for now. Europe and Asia finished mostly higher. We'll see how things go tomorrow.

A mixed bag to begin the week as the Dow was higher and the overall market lower. The Dow rose 140 points on light volume. The advance/declines were about even. The summation index is still trending lower. The overall market was down, with the NASDAQ losing 200 points. The S&P 500 had a slight loss. The short term indicators there are mostly oversold. Stocks are having a problem gaining any traction to the upside lately. Inflation data due out on Wednesday should be benign. I'm still interested in the SPY September puts but will wait for some kind of move higher in the near term before trying them. Gold was up another $28 on the futures. The US dollar was a bit higher an interest rates a bit lower. The XAU was up 4 1/8, while GDX added around 3/4. Volume was average. Gold and the gold shares have had quite a run in past few weeks. The short term indicators for GDX remain extremely overbought. This condition cannot go on forever. However we are not about to fight it. Mentally I'm feeling a bit tired. The VIX was up today which fits an overall down day for stocks. The short term indicators here are back to pointing up. Not sure where the VIX heads next. Now into the September option cycle and premiums are high. It's the last full week of trading in August and many players are getting in their final summer vacations. We are in no hurry to put on a position right away. We'll see if our patience pays off. Europe and Asia were generally lower to start the week. I'll keep an eye on tonights headlines.

Buyers returned on expiration Friday as the Dow climbed 517 points on lighter volume. The advance/declines were positive. The summation index is trending lower. The Dow led the way higher and that isn't the most bullish scenario. Still waiting on the NASDAQ to confirm the most recent highs in the Dow and S&P 500. The short term indicators for the S&P are still moving lower. Not sure how long that short term buy signal for the S&P we just got will last. Prefer to try the SPY puts once we get back to an overbought technical condition. Gold keeps rolling along as the futures gained $106. The US dollar finished little changed again and interest rates were a bit higher. The XAU rose 13 1/8 and GDX added 3. Volume continues to be good here. GDX is extremely short term overbought but in rallies like this one it doesn't matter. Money is coming into the gold shares and declines are viewed as buying opportunities. We will wait for some kind of pullback before attempting to buy the GDX calls. If one doesn't occur we will continue to look for an entry point for the SPY puts. Mentally I'm feeling OK. The VIX was down today and the short term indicators here have now turned lower. I'm not sure where the VIX is heading next. Just over a week left in August as summer is winding down. I'll be checking the charts over the weekend as usual. Rolling into the September option cycle but there's no hurry to do anything at the moment. We'll get some inflation data in the middle of next week. Asia was mixed and Europe higher to end the week. It's Friday afternoon and time for a break.

Back to the downside today as stocks cannot seem to gain any traction. The Dow fell 703 on lighter volume. The advance/declines were about 2 to 1 negative. The summation index is back to trending lower. The Dow led things down but both the NASDAQ and S&P 500 had decent losses. The short term indicators on the S&P are now heading lower and are at the mid-range level. There is strong near term support at the break out level of 7600. The longer term up trend line comes in at 7550. If for some reason those levels don't hold then we will be in for more downside. Getting close to a short term buy signal on one of our indicators for the S&P. Gold is the place to be as the futures added another $38. The US dollar finished about flat and interest rates rose. The XAU gained almost ten points, while GDX was up 2 1/2. Volume is still good to the upside here. GDX remains overbought on all the short term indicators. The medium term indicators still have room to go. Looking to try the GDX September calls if we see any pullback. Mentally I'm feeling OK. The VIX was up today and the daily chart looks like it wants to go higher. The short term indicators here are moving higher and are no longer oversold. It looks like volatility is going to make a comeback. I also still like the idea for the SPY September puts. Asia was higher and Europe lower overnight. We'll close out the week tomorrow.

Minor gains were posted today as the Dow rose 119 points on average volume. The advance/declines were positive. The summation index is trending lower. We had a small gap up at the open, rallied for a couple of hours but then sold off for the rest of the session. None of the major averages could keep the lions share of their intra-day gains. For some reason stocks cannot find any traction here during expiration week. The short term indicators for the S&P 500 are starting to turn sideways. Gold jumped as the US treasury secretary indicated that they would be buying more bonds to keep rates down. The precious metal futures were up $146 to over $4500. The US dollar got clobbered and longer term interest rates dropped. The XAU climbed over 32 points and GDX was up around 8 1/2. Volume was heavy to the upside. The short term indicators for GDX have turned back up in overbought territory. The pullback to the broken down trend line that we were looking for never happened. The gold shares simply took off to the upside and never looked back. GDX is up over 30% in 2 1/2 weeks. The gold shares have far outperformed gold itself. Not sure how much longer that can go on but I'm still a fan of the GDX September calls if we see some selling in the gold shares. However the ideal timing for this trade was missed by us once again. Mentally I'm feeling OK. The VIX was lower today which fits with an upside market. The short term indicators remain in oversold territory. I'm not sure where this indicator heads next. Still remaining on the sidelines for now with regards to the SPY and GDX options. Asia and Europe were mostly lower overnight. I'll keep an eye on tonights headlines.

The selling continues today as the Dow dropped 116 points on light volume. The advance/declines were negative. The summation index is trending lower. We had a big gap down at the open and then traded sideways for the rest of the day. The overall market fared much worse than the Dow with the NASDAQ leading the way down. We are still waiting for the NASDAQ to confirm the new highs made by the Dow and S&P 500. If that doesn't occur we will be heading lower. The short term indicators on the S&P have turned lower but remain overbought. I am considering the September SPY puts but the premiums are pretty high. The mood of the market seems to be changing here. Gold was down $74 on the futures. The US dollar was slghtly higher and interest rates slightly lower. The XAU fell 10 7/8 and GDX dropped 2 7/8. Volume was average. The short term indicators for GDX are still overbought. Mentally I'm feeling OK. The VIX was up today which is what to expect with a down market. The short term indicators here are moving higher but most remain in the oversold range. The VIX is still well below the 20 level. Three days left in the August option cycle and we'll remain on the sidelines for now. Considering the SPY September puts and the GDX September calls at the moment. Asia was mixed and Europe generally down overnight. We'll see how it goes tomorrow.

Starting expiration week on a down note as the Dow fell 272 points on light volume. The advance/declines were better than 2 to 1 negative. The summation index is back to tracking sideways. Most stock markets opened higher and closed lower. We got another signal on Friday from the McClellan oscillator for a big move within the next two sessions. This signal hasn't worked lately but we'll have to see what happens tomorrow. The Dow and S&P 500 led things lower today. The short term indicators for the S&P 500 have turned down but remain overbought. No SPY option trades in mind at the moment. Gold was up $39 on the futures. The US dollar finished a bit lower and interest rates just a bit higher. The XAU added 7 points and GDX was up 1 7/8. Volume was light. GDX remains short term overbought. I am looking at the September GDX calls but am still waiting for some kind of pullback before purchase. Markets rarely cooperate. Mentally I'm feeling OK. The VIX was up today and that coincides with a down market. Still short term oversold on the measures here. I'm not sure where the VIX is headed next. Not a lot of economic data due out this week as we continue to travel through summer. Haven't heard much about the US/Iran conflict lately but that could change on a moments notice. Waiting for the next decent technical signal but at this rate it could be a while. Asia was generally higher and Europe lower to begin the week. We'll keep an eye out for any overnight developments.

Weakness for much of the session as the Dow fell 107 points on very light volume. The advance/declines were slightly positive. The summation index is trending higher. Retail sales came in less than expected but after a brief pop the market was lower and sideways for the rest of the session. It had the feel of a Friday in the summer with not much action and players away from their desks. We could be getting this for the next couple of weeks in August but we'll see. Small losses for both the S&P 500 and the NASDAQ. The short term indicators continue to trend sideways in overbought territory for the S&P. Option expiration week coming up and we'll see if it has the usual positive bias. Gold was up ten bucks on the futures. The US dollar was lower and interest rates higher. The XAU gained 6 3/4, while GDX was up around 1 2/3. Volume was light. The short term indicators for GDX are trying to turn back up in the overbought range. I canceled my open order for the GDX August calls as we are running out of time in the August option cycle. Might try the September calls there but would have to see some sort of pullback first. Will try not to force the issue here because if summer doldrums trading mode takes effect it makes the options game that much tougher. Mentally I'm feeling tired. The VIX was lower again today and that does not fit with a down market. Extremely oversold on some of the short term indicators here. Not sure what's next for the VIX but it has been hanging around in oversold territory for two weeks. That won't last forever. Five days left in the Auguust option cycle so the risk is high there. Not sure that I'll be taking on any trades next week but you never know. The bulls remain in charge for now. I'll be checking the charts over the weekend to see what I can come up with. Asia and Europe finished mixed. It's Friday afternoon and time for a rest.

Moving up on lighter than expected inflation data but the Dow only gained 69 points on light volume. The advance/declines were positive. The summation index is trying to move higher. The NASDAQ led the way, up over 200 points. The S&P 500 had a decent gain of fifty for a new all time closing high. It appears to be breaking to the upside from the recent sideways activity. The short term indicators here remain overbought and staying there. No overhead resistance and the bulls are in charge. Gold dropped $63 on the futures. The US dollar finished flat and interest rates were lower. The XAU was off 10 points and GDX lost 3. Volume was pretty good to the downside. The short term indicators for GDX have moved lower but remain overbought. Perhaps this is the beginning of the awaited pullback towards the broken down trend line that we've been looking for. I still have my open order out there for the GDX August calls but with only six days left in the August option cycle I might have to move out to September. We'll see how things go tomorrow and take it from there. Mentally I'm feeling OK. The VIX was up a touch and that doesn't fit with an overall positive day for stocks. Oversold and staying there is the story here. We are still waiting for the NASDAQ to confirm the new all time highs for the Dow and S&P. Also waiting on the TRAN to confirm the move higher for the Dow. Asia was mixed and Europe lower again. Retail sales out on Friday and we'll finish the trading week tomorrow.