Saturday, October 20, 2012

Options Expiration Friday Review

This chart is only the first 2 hours of trading in 30min Bars with the most significant levels and only one trade entry Short.The targets for that entry is not shown.

This Options Expiration was very unusual in that it exceeded the average range of previous Opt Exp Days.

The pre-opening bias was bullish for many traders and the 20 Day SMA and the 38.2% Fib was expected to be supported but it did not.

There was some clues on the first 30mins of trading shown on this chart. There was a very heavy accumulation of stops loss orders below 1446.50 and 1439.50. Both levels were penetrated and a Spike in Volume occurred.The High Volume Zone from 1446.25 to 1444.25 from Oct 16 was violated and that was another important clue that Bears had absolute overwhelming control.

The GAP left on Oct 16 from 1436.75 to 1440.75 ( S 2 ) was filled on the second hour and 1436.75 inside the Gap was the Key Level to watch. There was a 2 points bounce or retracement at this level.

On the Third Hour it found support at 1430.75 and bounce or retraced 3.75 pts after an hour of consolidation sideways range and failing to penetrate above the 1434 Key Level. The key levels here were : 1434,  1431.75 < Weekly Pivot and the 1430 < Monthly Pivot, so 1431 was an important level that held for one hour.

The short squeeze and stop loss orders hunting game continues till after the presidential election as predicted 30 days ago on StockTwits.

JaguarTrader ( StocksTwits )

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