Monday’s big sell-off followed the familiar pattern of a big drop in prices on the first Monday AFTER options expiry….
pattern has been quite consistent in most months….the Thursday before
Options Expiration and the Monday after Options Ex are often big sell-off days….
knew that going into this week, and on Monday, as soon as I saw the TRIN spike up over 3
(near 5 on the daily measure), I knew within an hour or two, the bottom
would be in….
Sure enough, that proved to be true and sold all my SDS calls on Monday morning right near their top.
who thinks the market is driven strictly by the news has it wrong in my
opinion….instead, the Machines (controlled by their Master Quants)
plan out these moves days in advance, and then they selectively leave
their buds in the news media to focus on the news events that drive the
markets in the direction they want!
This doesn’t happen this way all the time, but it happens more than many people believe to be true.
is it that it looked like Europe was about to come un-done on Thursday
and Monday??? And the world economy was about to go into the tank so it
…..and yet, by Tuesday, not much changed except some
PLEDGES of more money (SDRs) for the IMF (news on Sunday)….and now the
world has already decided that events in Europe aren’t really so
important after all?
That fast???? C’mon! What changed so dramatically for that to happen???
already noted by some, the scare got some good stocks down to around
their 50 day lines where the big money managers often buy from scared
retail traders….like AAPL did. I call it psychological manipulation of the masses. The big hedge funds have lots of capital to play these games through their programmed computer trading systems–unless the world is about come un-glued, they view this as just part of the game of shaking out the smaller retail traders and investors to take their stock away at a cheaper price.