2 P.M. Options Expiration Pin Expiration

Even though an options expiration Max Pain Pin which is designed to make the most number (in terms of dollar amount) of options expire worthless (as smart money tends to write them and dumb money tends to buy them as a cheap way to gain leverage over a large position) is usually on monthly options or has been associated with monthly expirations in the past, the weekly options that are available have become so popular that we have noticed that Friday's often open and hang around the close of Thursday and often tend to be pinned like today with the SPX down a mere -0.12% with a daily small bearish engulfing candle; the Dow-30 with a small +.11% gain with a small bearish shooting star daily candle, The NASDA 100 is the only one that has moved further out with a -.69% loss and a bearish engulfing daily candle; while the R2K has a -.23% loss and a daily bearish engulfing candle.

Judging by price action, today looks very much like a Max Pain options expiration pin,  however another thing we have noticed is around 2 p.m. (you may know because your broker may call you like mine did on op-ex Friday and harass you with multiple phone calls to see what you wanted to do with your contracts so they could close them up and not have to stay late on Friday afternoon), as I was saying, around 2 p.m. it seems that most contracts are wrapped up which means the market no longer needs to hold the pin in place to make the largest dollar amount of contracts expire worthless and allow them to keep all the premium, after all options are a Wall St. derivative and are rigged as such, just like Vegas, the longer you stay, the more likely you are to lose and the House always wins.

The point being, we are approaching that 2 pm mark.

A third thing we have noticed that allowed us (all on op-ex Fridays) to make the call on 1/24 that the next week we'd see a range in the market with accumulation which we did the entire week of the 27th, on 1/31 the end of day 3C action on an op-ex Friday allowed us to make the call that we'd see a strong head fake move lower which we did on Feb 3rd and all of this allowed us to call the very strong rally that proceeded the downside head fake/bear trap on a short squeeze.

The point being, as of 2 p.m. price does just about whatever it wants, usually rises, but I believe last Friday it fell after 2 p.m., BUT the most important indication are the 3C signals after 22 p.m., as they tend to pick up where they left off the next trading day even over a weekend and it was these signals in the last 2 hours of trade that allowed us to make all of the calls above that were astonishingly accurate.

Price will do one thing often and 3C another, price rarely matters, but as the post was entitled "Come Monday", the 3C signals matter very much as they pick up where they left off late Friday afternoon.

That being said, I just looked at HYG and could see just by the price action they are trying to ramp it again, this is the reversal process/proportional concept.

 Does the price action look familiar? That's the 1 min intraday HYG action from today only, I knew exactly what I'd see when I looked at 3C based on the price action alone...

Another attempt like yesterday's failed divergence to get HYG to support the market, likely after 2 p.m., although the divergences are what really matter. Does this one hold where yesterday's failed? I can't say after seeing yesterday's fail, however, to illustrate how little it matters AND THIS IS WHY I HAVE WAITED ON ASSETS LIKE XLF AND FAZ, I included a few more charts beyond 1 min that matter.

 This is a head fake move under accumulation, NOTE THE DATES, JAN 27TH -FEB 6TH, HYG was being used as support for the overall market which was seeing positive divgerences on the EXACT same dates.

The10 min chart above is leading negative in a huge way so the 1 min isn't going to change anything.

Or perhaps the 30 min chart that failed before the market...

Just so you know, however this may give some edge to a few positions I've been considering, more than that the signals are going to be very important.