Options Expiration

As I mentioned a few nights ago, the indices have been short term overbought and a regression to the 20sma could occur. It appears that the indices are indeed pulling back, but there is not a lot of aggressive selling out there. AAPL was down after hours and could weigh on the techs again tomorrow as INTC did today, but in reality they were only down a few percent. I've recently been taking the Thursday of options expiration off, in conjunction with the Friday of OPEX, as options pinning begins. I will still be looking at a few plays, but it seems like the safer bet is to wait until next week before initiating any swing plays.

Here is one interesting chart that I am looking at.

KongZhong Corporation (ADR) (Public, NASDAQ:KONG)

KONG has pulled back respecting the 200sma as resistance, but volume has been declining on the pullback and the candles are narrowing in range possible giving us a clue that the bears are losing steam. It is now sitting on the lower band and previous support, so I will be on alert for a candle pattern, and hopefully volume confirming support.


Good Luck,


DT