Friday, October 15, 2010
DIA 2nd Test of Support...
So far support has been hit twice. The pattern forming is similar to a bearish descending triangle. However as we have seen time and time again, the black box systems search for these patterns to cause false breakouts and generate volume which they make money on in terms of the spread and rebates. don't be surprised to see an upside breakout before anything drastic happens.
3 comments:
Brandt and anyone else that would like to comment. Today is expiration Friday and right now nearly all the put options are going to expire worthless. This represents about 70% or maybe more of all the options for this month on the SPY. It would be surprising for 70-75% of the option traders to get this months call that wrong.
Jack,
Why? Only a small majority in the markets (and in society in general) win at the money making game.
I thought the market existed to transfer as much wealth from the many to the few as possible?
What do others think?
Well Puts were cheap
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