Coming off of one of the most unusual option expiration days where the market closed near its highs, one can’t not wonder what’s next. Have we come too far, too fast? Not only did the SPX close up nearly 2% on opex but closed above its 200-day EMA while breaking out of the 3-month range. One tell will be what Monday’s price action brings Since 1997 the Monday following October option expiration has been positive.
Add to the price action of last week that fact that we are entering into one of the most bullish times, with regards to seasonality, and one can’t not help but be a bit bullish. Of course we still have that old chestnut, the EU, to deal with. Perhaps the bazooka is fired this weekend, who knows. With all the data points out there I’m finding it difficult to not lean even though I have yet to be filled on a single position for the November cycle. Aside from managing risk, remaining neutral in my trading is the second most important job I have. Enjoy the links and your weekend!
- Too much undeserved self-praise can lead to depression [APA]
- Does the size of your brain dictate the number of Facebook friends you have? [Wellcome Trust]
- Mental training as a tool in the neuroscientific study of brain and cognitive plasticity [Frontiers]
- Review of “Thinking, Fast and Slow” by Daniel Kahneman [APS]
- Don’t blink! The hazards of confidence [NY Times]
- Before succeeding, you have to fully confront failure. But how? [Fast Company]
- The era of procrastination [Brain Blogger]
- Avoid these four investment mistakes [Morningstar]
- How the web affects memory [Harvard]
- Why teens are wired for risk [CNN]