That expiration week was fun, wasn't it? No that we're done with that madness, I think the market is set to dip a bit lower. The SOX and NASDAQ 100 are very close to their 200-day moving averages, and I think it's a safe bet that they will test them early this week. I wouldn't be surprised if the Naz itself may actually test its 200 DMA too. I'm back to thinking that the bulls still need to be flushed out in order to get rid of the last sellers. I watched Gary B. Smith on 'Bulls & Bears' this weekend and he probably summed up what many traders are feeling right now. He said that he was ready to sell everything Friday because he just couldn't stand being long through another 100 point down day on the Dow. But he didn't sell for fear that as soon as he did the market would rally. Those wavering types need to be flushed out. Let's see if it happens.
I'm not finding much that I want to trade at this juncture. I have a few more shorts than longs on my list for tomorrow, and the shorts look much more attractive than the longs do. I don't know if it's wise to be initiating shorts now, but if they trigger, I'm taking 'em... that's what stops are for.
