Watch Out for Options Friday

This is a bad week for short traders. The Dow is up ~3% in the last 2 months alone. Economic forecasts are pretty strong. A lot of bellweather stocks are beating expectations.

I think another reason for the rise is that short traders have to cover their position. So I am going to wait before using the cash to buy more stocks. Next week may see some pullbacks.

Additionally, when we have moved past earnings season there will be some pullbacks and opportunities. But we don't want to wait too long - I smell hedge funds going long on the undervalued energy and commodity stocks.