Short-term Seasonal Weakness Lies Ahead

I am going to keep it very brief tonight. Short-term seasonal weakness lies ahead. Every month around options expiration I state that the trading day following options expiration is bearish and I do not expect price action to be much different this time around.

I am still hesitant to step in until I see more of a extreme reading in our overbought/oversold readings, so I will patiently wait on the sidelines until  a highly probable set-up occurs.

Expirations have a tendency to start out sideways and drift slightly higher as the day progresses. The real action should begin next week.

Sorry to keep it so short tonight, but I think I might be coming down with a case of March Madness. Tomorrow I will discuss the upcoming condor position as well as a few other interesting financial factoids.

Overbought/Oversold levels for March 15, 2007

• SPY - 44.9 (neutral)
• DIA - 41.7 (neutral)
• IWM – 51.2 (neutral)
• QQQQ – 47.8 (neutral)
• OIH - 58.3 (neutral)
• GLD – 41.0(neutral)

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