21 December 2012

SP 500 and NDX Futures Daily Charts - Quadruple Witch

Today was a quadruple witch for options, and there is a rebalancing of the SP and the Russell after the close.

Stock futures plunged overnight in a flash crash supposedly because Boehner's 'Plan B' was shut down in the House by the Tea Party crowd led by Eric Cantor in a challenge to Boehner's leadership.

Since Plan B was an obvious non-starter all the way around, I viewed the plunge as 'symbolic,' that the market would throw a hissy fit if the Congress does not give them what they demand (again).

But a good part of it was probably option expiration related. These jokers never like to miss a chance to skin the specs, who had been leaning on the long side.

Have a pleasant weekend.