Option expiry & Thanksgiving are positive for Markets !!!!

Option Expiry & Thanksgiving are a positive mix for the markets.

We made higher HIGHS in market last week & sold off hard...this has repaired technicals & overbought conditions.

S&P 500 went to 1113.69 a new 09 high & higher highs on chart..an ascending pattern..sign of technical strength despite neutral economic data.....

S&P 500 is Down 2% from its peak & RSI is @ 54.60....this time RSI did not go higher than 65 area......so...the trading range IS narrowing which CAN trap some optimistic traders.....

S&P 500 50 DMA is 1070.36 which IS roughly 21 points from where we closed on Friday......so there is always a risk that we test 50 DMA.......which will be a potential correction of 3.9% ????

Where are the opportunities in this market.....Gold,Silver,Ag,Shipping & Tech are looking ready to make another run UPWARDS......Solar MAY take a rest as their RSI are in deep overbought territory???

Here is my $ allocation @ Friday's close :

AAPL 26.20% Tech PC/Smartphones
GNK 22.95% Bulk Dry Shipping
M...11.22% Retail Department Store
LVS..10.72% Casino Operator
SLW.10.22% Silver Reseller
MRVL 10.01% Tech PC/Smartphones
AUY ..8.68% Gold Producer

As you can see I follow strict discipline in being diversified..which I highly recommend for everyone especially @ current elevated levels....

I will continue to trade out profitable positions & buy laggards based on RSI.....do NOT be complacent in this market as shorts are ready to pounce on any weakness....so stay alert !!!!

I will also book some loss to offset my gains for the year for tax purposes as capital gains are taxed @ 50% in Canada ..no matter IF you sell in 1 hour or 5 years.....tax treatment do not change.

Good luck on your strategy & comfort level with this market.

BLOG does NOT give buy or sell.

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