Beware a Friday expiration rally, of sorts, that does not change the relative positions. Sure there are stocks working very well and they are stocks we are looking to buy. Not a lot of volume to support many of the moves despite expiration -- most of that will come on the close.
Thus, we have watched but have been hesitant to move in. We took some gain on NVDA (duh) and AEP (hey, gains are exciting if utilities are not). Likely pick up a half position in MCD's strong move. Some SOHU and likely GLUU as well.
After that we see if the move can continue Monday. I am not that sanguine about a continued move higher, but many good stocks are in position, and we could get a bounce back for a couple of sessions that sets up some more downside overall.
Even so, the recent leaders likely move right back up, and many of them are just holding their near support today and ready to move back up. When they do next week, we will be in. MCD and VZ jumped the gun a bit today, but that is okay.
That is how it is. A Friday expiration bounce -- again only in some areas and indices -- and often Monday is not a bounce after an up expiration.
SP500 8.52, 0.31%
NASDAQ 1.67, 0.03%
DJ30 145.29, 0.57%
NASDAQ 100 -0.17%
Jon Johnson, Chief Market Strategist
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