Risk is Spiking in Front of Options Expiration

Near term conditions are oversold yet indices and a majority of the stocks in the market don’t have support yet either. Add to this serious volatility in the commodities sectors surrounding oil inventories, PPI numbers, the dollar’s dead cat rise, and then throw in options expiration into the mix; conditions could not get more risky. This market is a guessing game over the next few days. Further out we have a pretty good idea what we think is going to happen. We laid this out in yesterday’s report. What will happen over the next couple of days is another story. We had a handful of stocks show up in the scans with both long and short set ups. When market conditions are as unstable as they are right now though it is important to look at these set ups very skeptically. As much as we like to keep our money working for us, we just can’t find any better place to put that money to work that is better than cash right now. We may be stuck in this rut until at the very least tomorrow’s options expiration is out of the way.