1. The market should trade down to shake loose some coconuts prior to options expiry next week. Looking at my chart, the SPX tends to trade down to or up to a relative extreme at options expiry.
2. Charles Kirk published a MarketSci chart in his magazine that shows that November has seasonable up days at the beginning of this week. I would take this seriously. Why? Because I still believe in the max pain theory. A couple of up days this week will draw in more weak hands for a flush out over the next 10 days into expiry.
3. I think we’re in the irrational phase of a bull market. But there will still be pullbacks.
4. I think we see 1700 in SPX before 1800. If we broke 1800 without retracing 1700, the irrational is upon us without remorse.