SECOND SHOE Options

[TechMan]

I'm keeping an eye on Spain, as The rain in Spain stays mainly in the plain....

As Spanish CDS hit all time high, the Euro's on its way to 1.3032 support, which is the breakout point of an hourly H&S formation. And, who cares about the Euro?! Well, the Euro is one of the majors that have an increasingly positive Correlation Coefficient with the SPX since, guess when, 3/19/2012.

This, among many other things, appears to be the setup for the 2nd shoe to drop. That may occur as soon as AAPL ID oversold condition is resolved or as late as Monday. If it happens while AAPL stays oversold, what does that tell us about this market?

I understand the bulls are looking at exactly the opposite result - another miracle bounce into the close perhaps. So, we shall see.

Dco-B is going to take questions after his speech. That may be a market moving event.

If you can't keep up with the Spanish yield spreads, you can always keep an eye on the Euro.

This post has been edited by TechMan: Apr 13 2012, 12:29 PM

[TechMan]

Dco-B is going to take questions after his speech. That may be a market moving event.

And, Dr. Bernanke Q&A session immeidately gave the market a boost.

[TechMan]

Dco-B is going to take questions after his speech. That may be a market moving event.

And, Dr. Bernanke Q&A session immeidately gave the market a boost.

But, Doc, what about QE3???

And, the market's given back what's given to it. It's fascinating that the entire market's built on QE or no QE.

Oh well....

[TechMan]

QQQ options opened with a 5,000 Apr. $65 PUT contracts!!!

Even without considering only 1 week to the expiration, you don't see this type of opening transaction on OTM puts too often, if at all. Options traders just don't do that unless they're really stupid or really smart.

And, this trader has turned an $80,000 investment into a $150,000 bankroll all in a couple hours of work.

What gut and vision doing something that's rarely done by others, if ever. And, what a genius!

[DrSP]

QQQ options opened with a 5,000 Apr. $65 PUT contracts!!!

Even without considering only 1 week to the expiration, you don't see this type of opening transaction on OTM puts too often, if at all. Options traders just don't do that unless they're really stupid or really smart.

And, this trader has turned an $80,000 investment into a $150,000 bankroll all in a couple hours of work.

What gut and vision doing something that's rarely done by others, if ever. And, what a genius!

You beauty! More to come next week IMNSHO....

[TechMan]

Now that 1387 looks like Fort Knox.

I've just realized yesterday's close was also 1387 and change, not yet 1388.

In any case, the SPX closed at 1388 is right around the 1387 supply overhang. We may see a positive divergence between the RSI (higher low) and the price (lower low) before building a VST bottom.

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You beauty! More to come next week IMNSHO....

We've only just begun.







This post has been edited by TechMan: Apr 13 2012, 03:03 PM

[andiron]

they will try cup and handle..next week...i am sure...

[CLK]

Dco-B is going to take questions after his speech. That may be a market moving event.

And, Dr. Bernanke Q&A session immeidately gave the market a boost.

But, Doc, what about QE3???

And, the market's given back what's given to it. It's fascinating that the entire market's built on QE or no QE.

Oh well....

And peolpe continue in denial that the market is held up by the Fed, as if it's nonsense. We would be at the 09 lows
right now if "they" were not involved.

Nice work staying bearish amongst the majority of bulls here.

[TechMan]

they will try cup and handle..next week...i am sure...

That "handle" is so far gone that it wouldn't be able to handle any "cup".


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Nice work staying bearish amongst the majority of bulls here.

Thanks, bud.

I think I'll turn bullish when Keith Olbermann goes to work for Fox News. :=)


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Amazing! I've just noticed that nobody had posted any new threads for 3 hours. And, as soon as I got my new thread up, things started poping again. I've no idea why this seems to happen on the regular basis, but it's been fun.






This post has been edited by TechMan: Apr 13 2012, 03:49 PM

[TechMan]

Nearly 70,000 VIX April 28 CALL contracts traded today while the same April 28 CALL remains the highest open interest. That's incredible, considering expiration on Wednesday.