Monday, December 21, 2009

Front Running Santa

All traders know about the positive seasonality till year end and beginning of January.  If everyone knows about it, then we should expect traders to position themselves for the rally.  They would be buying today in preparation.  Those buyers today would want to unload next week or the week after.  Rallying now probably makes it less likely that we rally from Christmas Eve to early January.  The put call ratios are extremely low today.

1 comment:

Anonymous said...

SOLD ZLC @ 2.77

-OL DAWG