Sunday, October 17, 2010

Opt.Exp Friday Price Action Review

A number of earnings high-profile reports, a speech by Fed Chairman Bernanke, and some economic data all conspired to drive the Nasdaq 100 significantly higher, the S&P 500 slightly up, but the Dow down today. Volume was heavy, likely mostly attributable to today's options expiration session ' some 1.4 billion shares exchanged hands on the NYSE. Bernanke suggested this morning that quantitative easing is likely. Interestingly, the US dollar failed to decline on this news and closed the day up 0.6% instead.

Google shares surged today after last night's strong earnings surprise. Google stock saw its strongest single-session gain in over a year and settled at a nine-month high. Given that Google represents 4% of the Nasdaq Composite's market weight, today's outperformance of the tech sector is not surprising. Seagate Technology also contributed to the Nasdaq's strength today as the company announced it is interested in going private.

In contrast to the tech sector's upswing, both the Dow and the financial sector failed to participate in the broad market rally today. The financial sector was off close to two percent and the KBW Bank Index even decline by 2.4%. Banks have been underperforming lately and this has some market observers worried about the broad market's prospects. The Dow lost some ground today after strong selling was seen on General Electric with investors disappointed about the company's modest revenues. GE stock saw its worst single-session slide in roughly five months.

A slew of economic data was released today: September retail sales were up 0.6% (consensus estimate: a rise of 0.4%), Excluding auto sales, retail sales were up 0.4%. In September, consumer prices rose 0.1% whereas core prices remained unchanged month-over-month (consensus estimate: a rise of 0.2% overall and an increase of 0.1% monthly in core prices). An improvement was seen on the New York Empire Manufacturing Index for October (this month's reading: 15.73; September's value: 4.10; consensus estimate for October: 5.75). The University of Michigan reported its preliminary Consumer Sentiment reading for October; it came in at 67.9 (prior month's value: 68.2; consensus estimate for October: 68.5). Finally, August business inventories were up 0.6% (consensus estimate: a rise of 0.5%).

Monday is a High probability important market turning day

Globex Sunday October 17 6:57pm est : SOLD 1173.25

Monday October 18 - 04:10am Globex Session :
Target filled at Institutional Level 1165 for + 6.25 pts profits ( emailed to subscribers )


  1. Hey great stuff..I would love to become a subscriber also, if possible.

  2. Send me your email to get the details.

  3. Great chart review: remarkable how support/resistance levels become targets at the time of economic announcements and at regular intervals (2 hrs is common).