Thursday, April 15, 2010

Markets About to Tumble if They Follow The Earnings Season Cycles

This is a follow-up to our post of March. As noted then, for the last two quarter the markets have taken a tumble around the middle of the month during earnings season. Given that tomorrow is options expiration, not much should happen. Any action would be next week.

These market drops can be seen on the SPY chart:

(please click to enlarge)

Below are straddles for SPY, IWM, and QQQQ (please click on each symbol link to receive alerts). These allow investors to profit indendently of market direction. The moves required are calculated by the StraddlesCalc Tool. In practice, moves required may be smaller on the downside, as premiums increase with increased volatility (prices down = higher "volatility). As well, there is plenty of time until May expiration.

(please click to enlarge)

Note: You may receive technical analysis and alerts of these stocks, sent automatically to you, by entering the symbols in the Technical Trend Analysis Tool, (powered by INO).

Please do your own due diligence. This is not advice. Options are very dangerous and may cause 100% loss.

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