January 7th through the 17th

This last week in the markets looks like a potential pull back for a short term buying opportunity to me. We had a 3 days of an uptrend and now two days of a down trend. This downtrend is typicall to option expiration trends. Typically the trend is the friday before option expiration to have a pull back in the market. The week that options are to be excersised we should have a an uptrend into the friday close. Martin Schwartz says in his book pitbull that three updays should be followed by three down days. So we had our first pull back on thursday of last week followed by friday. We could see a pull back on monday also. Maybe a narrow range candle on tuesday with a rally into the end of the week. Will look for a pull back on tuesday in the morning as a buying opportunity. Tight stops will be used in case markets doesn't like this idea. Which is very much a possibility.