Record options expiration fallout?

The best of the advance since 1939, the market has continued its trod the higher straight into mid-October and most importantly options expiration. As expected, the advance has again pushed many of Encyclopaedia Britannica marketed in a short-sighted "overbought" mode (mentioned in the subscribers ' weekly report).

Historically, the trade session (and downloads for the matter), the following options expiration overwhelming bearish.The odds increase dramatically when the market is in an overbought condition. This means that since the market stopped this past week (as it does normally pre-expiration) the likelihood of a lower on Monday to move increases significantly.

Currently have a SPY and TZA positions and will look at FXE early next week (as usual, subscribers receive my real-time trade alerts) as the RSI (2) have moved above 96, which typically means that short-term exposure is near.

Connect all of the above with the fact that we are entering a historically weak seasonal period (next seven out of eight days is a historic negative) and I believe bears could be a happy bunch of next week. There are some very strong support at $ 116.75 level and again at around $ 115 on SPY, but if we can break these two levels, I would not be surprised at the top to see a step that takes us back down to 9/13 the gap of $ 111.02. It sounds like a big step, but in reality it is only a 5,6% move. A step which would not be unheard of in the huge gains over the past month or so.

This could be a decent short-term play. As we all know, nothing is certain in the world of Commerce.  A disciplined approach with an appropriate stop-loss goes a long way to your success as a trader.Always define your risk before entering a trade.I would also note that the seasonal trends have held up, as well as of late.

Remember, opportunities are made easier than losses.So if you leave a few pass you by not delve into what could have been. There will always be more opportunities around the corner. remember that this is a marathon not a sprint.

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See and learn how implementation of my options strategies.

Best,

Andy