Congratulations and Prosperity!

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The solar New Year has been good for the bullish. One can see the volume trailing off, perhaps a cause for concern. One can also note that the options market shows players are interested in hedges, not speculation. Historic and implied volatility are at their lows for the past 12 months.

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The broad US equity indexes consolidate– toward the 20 day simple moving average in the case of the Russell.

The bulls made certain the market closed higher on the week. It seemed they had no resistance.

I would expect selling pressure on Monday. After that, we have four days to February options expiration Friday. The monthly options cycle may be losing its appeal due to the popularity of weeklies. There is a lot of money on the table. One should expect the bulls and bears to defend their positions this week.

A down day on Monday might provide an opening for some Vega negative trades and adjustments.

dumplings

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