OUTSIDE WEEK?

I don't have much time tonight to explain the "Outside Week" or bearish engulfing pattern on the weekly chart. You can read my blog posting last June 28, 2010 which explains it. If the Dow and S&P 500 close tomorrow at or lower than today's close, we will have this bearish "Outside Week" pattern (It is basically a bearish engulfing candlestick pattern). This would mean that there is a very good chance that the market would trade even lower next week. This pattern sometimes precedes big moves down in the market and it sometimes precedes little moves down in the market...but it usually means a move down! If we get that confirmation tomorrow, you might want to place a few put option trades going into the close. A few. Don't get crazy or risk too much...especially going into a weekend. I still like puts on SLV and OIH. You could even add puts on DIA, SPY, or QQQ if the market closes lower. By the way, you can place option trades on the DIA, SPY, and QQQ up to 15 minutes after the market closes.