CHICAGO Jan. 24, 2011 " "
Stock Market Trouble as Weakness Shows
10:00am ET SPDR S&P 500 ETF SPY $129.17 $128.30
Over the last three months, the markets have floated non-stop higher, especially on Fridays and even more so when the U.S. Dollar is weaker, like it is today. So what gives?
The problem here is simple. The markets are up over 20% in the last few months. Even the best earnings — perfection on all levels — cannot justify the recent gains. Institutions are looking to sell for now, take profits and evaluate their positions. This is creating a market that looks much different than what was seen just a week ago.
In addition, let’s not forget options expiration and the sneaky institutions wanting to push some key stocks lower, to have the plethora of calls they sold expire worthless. When options expire worthless, the institution enjoys the entire premium as a pure profit.
Bottom line is, this market is acting differently these last few days. This must be watched as a top could be near.
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