Strange behavior occurs at options expiration. I don't trade the market per se, don't trade index vehicles, I trade stocks, and most have been from the long side in the last 8 months, and I don't see anything to cause me to reverse that strategy now.
What the tape is telling..
- Thread starter Trend Fader
- Start date
nas has been bouncing between 25 and 50 sma, today it opened above 25 and closed just a bit above 50. I'm still mid-term bullish, today was an over-reaction; as you pointed out it may be attributed to options expiration. I will be going long tomorrow, would have placed a short position if today had larger volume, ie. at least above 2bil on the nas.
Tomorrow the eco# will probably influence the market mainly.
The PPI and CPI are due before the bell.
The median estimate for the CPI for January is: +0.3%
The median estimate for the Core CPI is: +0.1%
Fed President Poole speaks on the Economy at 7:30AM CST as well. Chairman Greenspan to speak at 11:45AM CST at a Chamber of Commerce meeting . . . and Fed Governor Bernanke will speak on Inflation at that same time as well.
The PPI is not due out till Monday, Feb. 23rd.
Median estimate is for +0.4%
The median estimate for the Core CPI is: +0.1%
Fed President Poole speaks on the Economy at 7:30AM CST as well. Chairman Greenspan to speak at 11:45AM CST at a Chamber of Commerce meeting . . . and Fed Governor Bernanke will speak on Inflation at that same time as well.
The PPI is not due out till Monday, Feb. 23rd.
Median estimate is for +0.4%
I don't like the look of the transports they confirmed all the previous moves to the 50 Day MA in previous times but this time they broke through the 50 day MA. I feel the same is coming for the Dow & SP. Looks like the NAS will be the first. If we have a down day tomorrow can we expect a big sell off on Monday?
I imagine that there might be tons of Stops just below the 50 day.
I imagine that there might be tons of Stops just below the 50 day.
buy stocks.
The smart money has been short for a little while now. Mutal Funds have put their clients money to work, that is what the smart money faded towards the end.
It will be a little while before we see a trend reversal IMHO, right now you will have chop and moves faded, (like the semis), low volume. This could last for a while at least into next quarter or two.
being short is not easy, but the risk/reward smiles upon it.
It will be a little while before we see a trend reversal IMHO, right now you will have chop and moves faded, (like the semis), low volume. This could last for a while at least into next quarter or two.
being short is not easy, but the risk/reward smiles upon it.