The game remains the same as ever since March '09 bottom...
Strong hands continue taking every opportunity to squeeze weak shorts, while at the same time employing call options for the sake of:
- [slowly and deliberately] offloading unwanted long positions (the size of which obviously has diminished, as volume off early-February bottom amply demonstrates);
- hedging what now has become a ripe field of qualified short candidates.
Strong hands hedge. Were these bullish the CBOE Put/Call ratio would be trending higher. The 200-day moving average reveals quite the opposite, instead.
Thus, strong hands evidently are bearish. Short positions, indeed, apparently are being hedged with call options.
If anything, this is becoming more pronounced, and notably more decided, since early-February ...which is as one might expect this late in the market's counter-trend rally off March '09 bottom.
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© The Risk Averse Alert — Advocating a patient, disciplined approach to stock market investing. Overriding objective is limiting financial risk. Minimizing investment capital loss is a priority.
Analysis centers on the stock market's path of least resistance. Long-term, this drives a simple strategy for safely investing a 401(k) for maximum profit. Intermediate-term, investing with stock index tracking-ETFs (both their long and short varieties) is advanced. Short-term, stock index options occasionally offer extraordinary profit opportunities when the stock market is moving along its projected path.
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