Bulls Raged On Exactly As Predicted...
Welcome to Week 3 of January 2018!
EXACTLY as I have predicted in last Monday's report, the US market continued to make another big strong positive week last week following the 7th positive week the week before! (yes, soooooo many "experts" thought the market was going to crash last week! LOL!) Here was what I said:
"In fact, it seems like from this point forward, the market tended to put up yet another couple of good weeks as the herd starts getting into the rally late before a pullback happens."
And that was exactly what the market did!
The S&P500 closed 1.57% higher last week in an extremely strong week as the herd jumps in on a late rally.
However, this is when it will start to get quite dangerous...
Like I mentioned before, the market tends to make another couple of positive weeks following 7 positive weeks but that also tend to put the market into such a deep short term overbought condition that in the couple of weeks to follow, we should see quite a significant negative week as the market take a breather before moving higher.
As such, I continue to favor profit taking over putting on new position at this point in time. Especially since my Master's Stock Options Picks subscribers and I are sitting on over 100% profit on our call options in PTEN and HBI so far... its time to find a good exit point now! (if you never made any profit during this period, join me now for just $1 at http://mastersoequity.com )
This is also January options expiration week.
In according to the "options expiration week effect", a known anomaly in the stock market, big cap stocks tend to do well during options expiration week. As such, this could lift the overall market, setting up good exit points for our existing positions before things start getting VERY dangerous from next week onwards.
For now, the market remains in all out bull trend.
EXACTLY as I have predicted in last Monday's report, the US market continued to make another big strong positive week last week following the 7th positive week the week before! (yes, soooooo many "experts" thought the market was going to crash last week! LOL!) Here was what I said:
"In fact, it seems like from this point forward, the market tended to put up yet another couple of good weeks as the herd starts getting into the rally late before a pullback happens."
And that was exactly what the market did!
The S&P500 closed 1.57% higher last week in an extremely strong week as the herd jumps in on a late rally.
However, this is when it will start to get quite dangerous...
Like I mentioned before, the market tends to make another couple of positive weeks following 7 positive weeks but that also tend to put the market into such a deep short term overbought condition that in the couple of weeks to follow, we should see quite a significant negative week as the market take a breather before moving higher.
As such, I continue to favor profit taking over putting on new position at this point in time. Especially since my Master's Stock Options Picks subscribers and I are sitting on over 100% profit on our call options in PTEN and HBI so far... its time to find a good exit point now! (if you never made any profit during this period, join me now for just $1 at http://mastersoequity.com )
This is also January options expiration week.
In according to the "options expiration week effect", a known anomaly in the stock market, big cap stocks tend to do well during options expiration week. As such, this could lift the overall market, setting up good exit points for our existing positions before things start getting VERY dangerous from next week onwards.
For now, the market remains in all out bull trend.
posted by Jason Ng at 4:31 AM
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