Langlui's Big Board and Options Plays

[langlui]

What do you think of this commentary?

"The good news is that we closed above 750 today. I think we will see more follow through on the upside tomorrow. I would not want to be short going into the weekend. This should set the stage for a nice rally next week.

It’s quadruple witching hour next week. We may see upward bias with option expiration (i.e., buy programs). I will be very interested tomorrow to see the in the money open interest in the March SPY options. At the start of the day, the open interest ratio was in favor of the puts .... 2.4x calls. I am betting this ratio will be roughly even with today’s action. In addition, we are getting close to quarter ending window dressing and there is plenty of cash on the sidelines. The talking heads on TV are now calling for a short term rally. People do not want to be left behind. It’s the mirror image of the Doom and Gloom talking heads scaring people into dumping stocks for fear of losing everything. It’s the herd mentality. We should enjoy this rally while we can. I think the next stop is 870. I would not be surprised if we reach this level next week. Hope I am right."