Large amounts of QQQQ calls have been flying around at 38 and 39 July strikes. This can be a warning sign for bulls as too many traders lean on the long side just ahead of a major news event. The 37 and 38 strikes still look "put" supportive on aggregate, but the 39 strike is starting to look like a wall. However we are still three weeks away from opex, which means we could still rally past 39, before settling down. My guess is any rally that goes as far as QQQQ 50 dma (39.75) will find serious sellers. But the ride up to that, should it occur, would hurt quite a few bears. Just don't fall in love with it.
This entry was posted
on Wednesday, June 28, 2006 at 5:14 PM.
