Benzinga's Options Outlook For The Week of August 19: Markets In Relative Pullback Mode
Markets have been in relative pull back mode. Traders shouldn't expect any serious sell off without a major catalyst. It's become a stock pickers market once again. Much of the short selling has not yielded the best returns, neither has dip buying.
This shows that there is literally no momentum in the markets to either direction. If traders snagged a short, it was probably LinkedIn (NYSE: LNKD), Google (NASDAQ: GOOG) or Priceline.com (NASDAQ: PCLN) post earnings that turned out the best.
Don't expect SPY to breach 170 any time soon as we still sit in consolidation. Traders should consider being a net seller of options for decay or go for scalps. Many traders have gotten burned looking for moves that last too long.
Consider waiting for the momo. This is a good time to practice discipline.
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