I’ve always wanted to visit Europe but right now I’m so sick of it that you probably couldn’t get me on a plane over their if the trip was free. Don’t get me wrong, as an option trader I love the volatility but too much of anything isn’t good. I’d venture to say we break the 200-day early next week heading into the FOMC. After that it’s anyone’s guess because of opex. Once we clear that I think we make higher highs for the year.

To go along with option expiration this coming week we have quite a few economic reports that could act as catalysts to get us over that 200-day. Tuesday we get retail sales along with the FOMC statement, which could definitely move this market. Thursday brings with it the Producer Price Index (PPI), weekly jobless claims and the Philly Fed manufacturing index. The week closes out with the Consumer Price Index (CPI) and triple witching. The economic data has been improving here in the US of late and maybe once we get through opex we get that Santa Claus rally. Then again, maybe not.

Enjoy the links and your weekend!

  • The brain basis of “unrealistic optimism” [Research Digest]
  • Feeling of power influences how we think [PsychCentral]
  • Oxytocin makes you feel more extroverted [MNT]
  • The power of smart listening [Time]
  • Europe and investor behavior [Forbes]
  • ‘Tis the Season for Nostalgia: Holiday Reminiscing Can Have Psychological Benefits [APA]
  • How preferences affects quick choices [Scientific American]
  • Vision scientists demonstrate innovative learning method [NSF]
  • Bee swarms mimic human brain neurons to make decisions [Cornell]
  • Psychology researcher finds that power does go to our heads [Queens University]
  • Why people secretly fear creative ideas [PsyBlog]
  • Sound and vision work hand in hand [UCLA]
  • Watch a live feed of Saturday’s lunar eclipse [Wired]
  • Empathic rats spring each other from jail [Discover Magazine]
  • Research on thinking explains why we make bad decisions [Boston Globe]