The markets are not liking the beginning of options-expiration week thus far. The indices have gone straight down from the opening kickoff. Let's take a look at what, if anything, is looking good and what is not.
: Bonds are up, but off earlier highs.
: Stock is seeing some follow-through from Friday's pop.
UltraShort Real Estate ProShares
: Working well as real estate plays fall.
UltraShort Financials ProShares
: Also doing well with the pullback in financials.
UltraShort QQQ ProShares
: As the Nasdaq falls, this play rises.
: Selling continues after Friday's fall on announcement it was buying a
: Leading casino play continues to act terribly.
are both trading lower.
: Railroad plays
Burlington Santa Fe
are uncharacteristically leading the transports sector down.
: Lots of red in stocks like
are all giving back hard today.
If the ultrashort plays can trade near the highs late in today's session, traders will have a good opportunity for an overnight hold into tomorrow. I would not make any big moves until we see how the last few minutes of trading look as late-day buying spurts have sent shorts scattering recently. Patience is a necessity. The long side may work better if we can consolidate for the next day or so.
To take the emotion out of it, simply put your stops in place and use trailing stops to your advantage when your positions are working well. Keeping emotion out of trading is a good thing.
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At the time of publication, the author had no positions in stocks mentioned, although positions may change at any time.
Tom Reese and Paul Rubillo are senior editors of Dividend.com. Visit Dividend.com for more dividend stock ratings, picks, news, and analysis for long-term and income-seeking investors.