Option Expiry week,ER & Markets.......

This Friday is option Expiry which means markets will be subjected to factors beyond its control...generally Market Makers have a defined strategy in mind with key stocks in terms of strike prices,,,which affects the sentiments of overall market......

Thursday is generally very weak based on recent trend where most of the OE activity is played out.....

Weak stocks gets weaker & generally go to lower strike price..while strong stocks are close to nearest strike level.......

ER are due for Q4 this week for some which will also set the tone for stock prices..I expect them to be BETTER than expected......

This week MAY be more interesting IF we keep an eye on RSI of key indices...which are :

Nasdaq 68.98

S&P 500 66.98

Dow 62.36

As we have seen that Monday is strong..then we MAY hit resistance based on RSI by Wed....so for traders it MAY not be a bad idea to lock profits on Wed & get back in by Friday close.....

January TAPE so far.... has been extremely bullish & points to higher prices.......

When market IGNORES bad news @ higher level then it wants to go higher.....

TAPE for strong stocks are giving clear message"stay the course"......

Market strength is broadening into many sectors....so it will be PRUDENT to stay in many sectors..this way your portfolio SHOULD grow overall......

IF you are diversified...then there is no need to trade as the TREND REMAINS UP......

I am closely monitoring TAPE for any shift in sentiments...but indication are clear that we MAY have a melt UP......

Closely following fundamentals & technical patterns will help you stay in strong stocks and get rid of weaker ones......

Here is my $/sector allocation as of Friday's close :

TSL 25.90% Solar fully integrated
POT 16.12% AG Potash producer
SOLF 12.20% Solar fully integrated
APWR 11.88% Wind Turbine/Alternate Energy
IAG 8.78% Gold Mining
ASIA 8.22% Tech/Software
SLW 7.39% Silver reseller
AUY 5.3% Gold Mining
TC 4.3% Molybdenum Mining

I know I am overweight in Alternative Energy & Mining but still spread out in different concepts in 9 stocks & it IS working.......

Good luck in your OWN trading techniques..IF it works then it IS a good one..IF NOT better CHANGE......

BLOG does NOT give buy or sell.

Saleem