Welcome new reader!

Financial news I consider important, with my opinion, which is worth as much as you paid for it.

Thursday, April 16, 2009

Market direction one day before options expiration

This Saturday, stock market options expire. Historically this event has been a magnet for odd stock market moves. I wouldn't be shocked if the market opens up down big Friday or Monday, as part of the market manipulation games that are occurring.

In any event, lets take a look at the DOW chart:

From WebSurfinMurf's Financial Blog
The market has risen 24% in about 6 weeks, pretty far, pretty fast. Even though I do expect the market to go higher, possibly DOW 10K, the market usually doesn't make the move in a straight line. The market is over-due for a correction.

To give you an idea how significant 24% is, in 2003 from the recent market bottom, the market rose 24% in 24 weeks. And back then the world banking system wasn't under a possible crash scenario.
I won't bother posting the charts, but stocks I am (and most Happy John is also) shorting these stocks:






















Stock 4/16/9 NA Percent Gain
AAPL 121.45




%
BAP 50.01




%
BBY 38.53




%
EAT 18.78




%
DEE 82.72




%
DECK 62.33




%
WYNN 33.47




%



The ETF DEE is kinda a crazy one, so I am doing only 100 shares to watch. If DEE gets to 100+ I'm in big. I'll reprint the list above when I start to cover.

Happy Johns "high risk" play is buying FAZ. I have been raped by playing with FAS, so I'm not joining him.

So I expect a market pullback, few days or a week or two, before the Obama rally party resumes.

I am still in long resource stocks in Gold, Oil, Food, etc, but lightened up a little and added the shorts above.

No comments:

Post a Comment