Friday, September 19, 2008

Manipulation during Option Expiration Week? Nah!

Eversince the 10/11/07 SPX All Time High, we have been in a perfect Down Channel (Click on chart to enlarge). Yesterday we touched lower support of this channel at 1133 SPX and in less than 24 hours, on the very last day of Option Expiration, we are up 120 SP's!

Simply Amazing!

Today, 9/19/08 is Option Expiration Day and all September Options expire in the first hour today and close to the
"Maximum Pain" price, that is the price, where most Options will expire worthless, which of course is to the benefit of the "Big Boys", who underwrite these Options.

Manipulation during Option Expiration?, You Bet! and this time with the Fed's direct Help, publicly bailing out and providing hundreds of Billion of dollars to save the current financial crisis that was caused by the wealthy Risk takers (aka Gamblers) in the first place in our not so free Capitalistic System. They were once again "saved by the Option Expiration Bell". Derivatives is a Trillion Dollar Market, so there is alot at stake.

Just look at the last 2 Major Lows in the Stockmarkets, they arrived, you guessed it, during Option Expiration week!:

1. 3/17/08 Low, was the 1st day of OE week and we rallied 73 SP's in 4 days into OE Friday.

2. 7/15/08 Low, was the 2nd day of OE week, and we rallied 62 SP's in 3 days into OE Friday.

3. 9/18/08 Low, was the 4th day of OE week, and we rallied 120 SP's (sofar) in less than 1 day into OE Friday.

Will this outright Manipulation continue? Yes of course, unless something drastically changes, it has always been like that.

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