someone just pointed out that options expiration was last friday. i haven’t traded any options this month except for those TLT calls i mentioned the other day. those actually expired today (last trading day was yesterday) while almost all other options, except for the VIX and a few others, expire at the close of the trading session on the 3rd friday of each month. i didn’t realize that the 1st of june happened to fall on a friday this month so this will actually be the 4th friday. i was going off the expiration date on my TLT calls and my mental clock had me figuring this was only the 3rd friday of the month. regardless, i have no desire to establish any new positions in front of the weekend.
remember, the cross-currents that i’ve been mentioning continue to be very strong: on one hand, i see quite a few bullish charts right now (although yesterday’s big red candlesticks banged them up quite a bit, technically speaking) and on the other hand, the fundamentals continue to deteriorate at a significant rate. therefore, i continue to urge caution and believe that keeping your position sizes commensurate with your risk tolerance and experience level makes a lot of sense right now. regardless of the many short-term bullish charts, the long-term charts are still not too far away, relatively speaking, from those powerful sell signals that i covered on the NDX/QQQ and SPX/SPY video overviews that i posted a month or so ago. yes, those sell signals did play out and yes, the correction that followed might have ended back on june 5th but if so, that would be about the minimum downside that i would expect those signals to have played out for so it is very possible that the recent bounce in the markets was just a correction on a larger downtrend with more to come.