August 24, 2017

Seasonal Weakness Typically Follows President’s Day

Seasonal Awareness

Historically the trading day the follows options expiration is weak. Compound this short-term seasonal tendency with weakness that typically follows President’s Day and you now have my attention. However, as I always state, I never base a trade solely on seasonal tendencies.

The seasonal tendency following President’s Day is a bit more extreme then most holidays with the Dow and S&P only finishing the day higher only 33% of the time.

Daily Market Comments

Not much to say here. Today’s trading did not do much for our short-term overbought/oversold measures. The benchmarks we follow are still firmly in a neutral state. I will be adding a few other benchmarks to the overbought/oversold measure next week (International, Commodities, Sector, etc.). Stay tuned!

Upcoming Expiration Report – Subscribers, just a reminder, the expiration report will be out during the latter part of the weekend. As always, we will be sending you an alert to notify when the report is available on your Insider’s Page.

This month’s report is important because we will discuss the Gap Fade options strategy in great detail. Since the strategy’s inception two weeks ago the Gap Fade strategy is up 16.4%.

February 15, 2008 – Overbought/Oversold

S&P (SPY) – 50.9 (neutral)

Russell 2000 (IWM) – 44.8  (neutral)

Dow (DIA) – 46.2 (neutral)

Nasdaq 100 (QQQQ) – 44.7 (neutral) 

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