Option Expiry this week MAY put downside pressure from Wed......

Indices are @ healthy level. Technical picture is strong.

S&P 500 closed @ 1343.80 only 26.79 points or 1.95%  from making a new 2011 high.

RSI stands @ 62.48

There is a very good chance of making new high by Wed of this week.

I see Option Expiry putting negative pressure from Wed onwards.

VIX is clearly giving all indication that FEAR has subsided.

New money is being allocated to equity by individuals & Hedge Funds.

As we move to new highs, CAUTION is warranted.

By Wednesday, it may be PRUDENT to book gains.

When everything looks good, i start getting UNCOMFORTABLE.

Market is a TRICKY mechanism, when everything looks bad, i am extremely confident.

I will be reducing my exposure by Wednesday, based on gut feeling.

Here is my $ weighting in my portfolio , so IF i sell something..you will know how much i have taken off the table :

LULU 35.73%
PLCM 22.86%
GG 19.38%
ATML 7.51%
UXG 5.83%
SVM 5.21%
SOL 3.48%

Market trades in a range in an ASCENDING pattern these days.I may be inclined to do quick trades on an intraday basis, but exposure will be much much less.

BUT...i could be 100% wrong about market behaviour from Wed onwards. This market has proven many wrong.

Once market pulls back, then i will see how i feel.

Based on current momentum, we have UPWARD bias for Monday.

Earnings are in full swing from AA to GOOG on Thursday. Depending on earning reports market may REACT accordingly.

IF you look @ most charts, they are looking extremely overbought.I have not seen charts in many years which looks like a "sharp V".....thus my cautionary take.

BUT...markets will do what it wants to do, irrespective of my comfort level.

I am also a " firm believer" in tinkering with exposure, IF we are NEAR top end of the range.

Sometimes leaving last few $ is the best strategy.

Another reason for caution is, that too many stocks are making series of 52 wk or all time high ..........generally happens near TOP ?

Good luck with your OWN analysis of market & stocks.

BLOG does NOT give buy or sell.

Saleem