This seems like yet another week of just waiting on the sidelines because the market has yet to decide which direction to move.
As I mentioned last Sunday – “my recommendation is to stay on the sideline at least until we know which direction the market is headed”. Currently one the main indexes that I watch is the QQQQ and it’s still hovering around the same $40 range.
The only ones profiting in this market are option writers. It doesn’t matter if they’re writing calls or puts — neither of those options are worth anything unless the market goes in a specific direction. And since the market is not going in any direction there is no incentive for the option buyers to profit from the options and so the option writers get their premium and no one is going to be exercising their options for the time being.
As always stay tuned and let’s hope the market picks a direction this week!
