Benzinga's Options Outlook For The Week of August 26: Questionable Market Structure Likely To Continue
Markets have been choppy with some issues involving market makers and exchanges last week. Goldman Sachs (NYSE: GS) had an issue where they are having the market makers break the $100MM mistake. All the while, NASDAQ went silent for almost an entire day. Look for more questionable market structure issues in the next several months.
Overall market is bullish after the big boys showed their hands during the NASDAQ issue. Traders should make sure to practice dip buying if playing in this market. The SPY isn't expected to make it over 170 without any meaningful catalyst. Traders should consider switching back and forth between techs and financials as price action has been horrible.
Bank of America (NYSE: BAC) and Citigroup (NYSE: C) have been the dogs, while JPMorgan (NYSE: JPM) and Goldman Sachs have been moving nicely. Google (NASDAQ: GOOG) and Priceline.com (NASDAQ: PCLN) look to have been good dip buys going into next week as well.
If it sounds a bit tedious, it really is. Again, summer action is the time that market makers drain accounts. Don't be part of the herd. Enjoy the summer. If you are playing, play with caution and professional stops.
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