Well sorry for no market thoughts last weekend and little posting in the week but I have been swamped and my sinuses are killing me as we enter spring. I was born with serious sinus problems and have tried everything know to man and nothing helps.
Well we got a four days bump and yes it is a bump in the markets last week. This week is options expiration and I expect us to get some volatility this week. It is from my experience that this week should be a down week since we usually reverse the action on option expiration week. Now this is going to sound very strange but we are currently overbought and indicators are already showing the rally is waning in strength. Can we go a little higher yes but it will just be a better short entry.
I am currently short the russell from Thursday and obviously I am underwater but I will ride out my bets as usual. The S&P is the one to watch this week. 766 is the next upside I see but on the downside we must defend that 734 area or the bulls will welcome back the bears in numbers and a quick shot down to 701 is possible. Remember we are up 90 S&P points in 4.5 days and we can retrace half of that and still remain in an uptrend of this little correction, so we will see.
The banks have bounced heavily and here is a good spot to add 1/2 lot to shorts again or initiate 1/2 lot in my opinion. Nasdaq looks weak and it is possible that the next leg down this is the sector that will lose the most ad I will be betting on that.
Watch GOOG short- also watch XLF 8.60 level to short the financials.
MARKETJEDI
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