Seeing some follow through with a decline on Friday would be the best option. One day is not a trend and neither is it material profit taking. For those wanting to enter new positions after six weeks of gains we would get a safer entry if we could duplicate Thursday's losses and then start over again on Monday with a new rebound.
Unfortunately, the news on China may be longer lasting and two days might not be enough profit taking to provide a real margin of safety. I have written multiple times that the market was maintaining its rally because of hopes for a trade deal with China in two weeks. Now that the meeting appears to be off the table, it suggests the March 1st increase in tariffs may be back on the table.
Add in the economic downgrade of Europe and the approaching hard Brexit and the negative earnings growth for Q1 and we might not make it to the normal February turning point of expiration Friday.
New positions are only added on Wednesday and Saturday except in special circumstances.
NEW DIRECTIONAL CALL PLAYS
No New Bullish Plays
NEW DIRECTIONAL PUT PLAYS
No New Bearish Plays