Basic Materials Are Weak - Short the Bounce When It Runs Out of Steam

One Option Trading Blog http://ift.tt/1XalJ6t Posted 9:50 AM ET - Two steps up, to steps down. The steps down will be larger in magnitude and the market will have a negative bias. This is the price action I expect to see over the next few weeks. The possibility of a big down day looms, but I don't see that happening ahead of the Unemployment Report. Bearish markets open on the high and they fade the rest of the day. I believe this early rally will stall and there will be an opportunity to short stocks. My favorite sector to short is basic materials. These stocks are …