During the past six months I was singing the classic song, A Horse with No Name, almost every day. We were in a trading "desert", a sideways trading range with no clear direction. However, things may be changing.

As of close of May 14th, in the past three months, the SPX is up 4.21%, the DJX is up 3.62% respectively. However the NDX is up 11.73% in the same period clearly outperforming the other indices. The NASDAQ is led by the Four Horseman, (which clearly have names you have heard of), Apple (AAPL), Amazon (AMZN), Research in Motion (RIMM) and Google (GOOG). These four horses account for 20% of the NASDAQ 100.

As you can see, these horses have been running at full speed for the better part of 3 months. The question now comes, can they sustain it?

Personally I believe, call it the contrarian in me, you will begin to see somewhat of a slow down in these stocks, and as a result the NASDAQ 100. It may only be for a month or so, but as they do slow down it should provide you with a few trading opportunities. Month-long short iron condors on the cash settled MNX come to mind or perhaps selling OTM call spreads. You may even look for a pullback in the four horses for a potential stock purchase. Either way, these horses are gassed and are in need for some shade and a cold one.

Successful Trading!

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