Option Expiry week could be bullish......

So ....here we are in third week of much dreaded May......

So far in May....we are Down 4.3% in S&P 500....feels much worse because of gyrations in the markets & Euro-phobia......

This is the Option Expiry week in Wall Street..when Market Makers takes control of the market...I have a strong feeling that OE week COULD be BULLISH as we are deeply oversold since 4th of May......

Current RSI read is as follows :

S&P 500 41.19

Dow 42.34

Nasdaq 42.41

These RSI numbers were hitting 80+ in 2nd week of April....only 4 weeks back......IF everyone was a buyer back then.....then why not position for a major buying strategy NOW ?????

There is lot of NOISE about EURO...currencies goes through adjustments all the time..nothing NEW there...remember when US$ was slumping to low low of 74.17 week after week & every month now 86.29..BUT market kept going UP....

Sooner or later everything is discounted by market & market focus changes to positives.....

SO..what is POSITIVE for the market right NOW......it IS the World Economic resurgence .....China,India,US,Canada,Australia all showing sign of GROWTH.....

Trillion $ bailout of weaker Euro zone will work.....just like our Tarp.....

There is lot of questions about Euro Bailout just like Tarp......BUT in the end it will be a success....

German economy is the strongest..Scandinavian countries are doing fine..only some European countries are showing sign of stress like Greece,Spain......

Euro MAY weaken to 1.20 area and MAY find support there....so it is important to know the impact of weaker Euro in companies you are evaluating to invest or trade.

Here is my $ allocation/sector as of Friday :

CIEN 28.67% Tech/ Networking Equipment
JDSU 28.04% Tech/Fibre Optics
SNDK 26.20% Tech/Nand/Flash Memory
BRCD 17.09% Tech/Data Networking

Tech is a strong area except where it is PC sales related......

Good luck with your OWN due diligence & comfort level.

BLOG does NOT give buy or sell.

Saleem