Is it not a little amazing how well the Dominant Price/Volume Relationship works? Calling for a green close today of yesterday's horrendous dominant relationship as well as the dominance in S&P and Monringstar sectors/groups being completely 1-day oversold, but in a much larger way going back well over a trading month (see last night's and Wednesday's Daily Wrap).
In any case, everything about today has screamed op-ex pin, yes even the weeklies unfortunately, but as the 2 p.m. hour approaches, most contracts have been wrapped up and the market starts doing whatever it wants or they want, however the 3C signals the last two hours are some of the best information of the week. I suspect as the max-pain op-ex pin (causing the most "dollar" amount of options to expire worthless-there are calculators that can calculate max pain for various assets based on dollar value rather than open interest-not that I am endorsing their accuracy).
So I'm looking for some more movement in to the last two hours. We know what leading indicators look like to a large extent so I'll be updating 3C charts for a slightly longer period than just intraday. There really hasn't been much to do today other than tag the prospects on the watchlist, set price alerts and keep an eye on the market, I don't want to chase anything at these levels.
MCP is of interest, for a number of reasons I'll put in a follow up post. Hint...intraday action and daily candles, you can get both from the daily candles.
5 years ago
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