Even though you will hear calls for another market sell off from the talking heads on CNBC and other media outlets, the light volume won’t let anything drastic happen. When there aren’t any real large sellers in the market, the institutional traders, program traders and our favorite high frequency trading machines can easily manipulate the market up and down. Today’s action in the stock market is most likely more due to the wacky option expiration week shenanigans than anything materially wrong right now.
I go into more depth in the video below, including a quick look at the gold and oil markets.
In addition, I provide two trade set up ideas that are actionable either now or in the near term.