Focus List 9/16 - Options Expiration

Geoff Bysshe | September 16, 2011

Friday is options expiration. This can lead to increased volatility and chop. The market is a little stretched to the upside and the leading index, the QQQ, is sitting right at the 200 MA after a 6-week climb to get there.

For all the reasons mentioned in yesterday's Focus List, the short term has a bullish bias and the longer terms is still flagging or consolidating in a longer term bearish phase. Some interesting point of confluence are:

• In all market watch the FTP will line up with yesterday's high so it should be good support.
• The daily swing highs from 9/1 in all but the Q's line up with the 50 day moving average so that should be good resistance.

I'd focus on OR reversals in same direction as the pivot stack. If trading a breakout I'd be careful to time with a point where the market watch are either reversing or also breaking out so you have the market pushing with your trade not against it.

Long Focus

CELG
GMCR
SINA
CERN
BIDU
CMG
PPS
HUM
WLT
NEM
TSO
WYNN
IDCC
JAZZ

Short Focus

CPT
FSLR
ACOM
SHW
TZOO
MCP

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