skip to main |
skip to sidebar
Tomorrow is option expiration on stocks.
The sell off today seemed a little 'technical' to me. Although the symmetrical triangle has broken to the downside, I don't count it ahead of an option expiration unless they can take it and book it into the weekend and hold it on Monday.
Next Tuesday is metal expiration on the Comex.
The December Option Expiration on the COMEX is next week.
US trading will be thin in the holiday shortened week.
Change is in the air. But the biggest changes come slowly, over a long priod of time, and then suddenly make themselves known when the truth is revealed.
I am showing the NAVs and their premiums in the morning and in the afternoon.
Even yesterday some of the premiums were contracting ahead of the hit on metals.
It's the scandal that keeps on giving.
A party associated with The MF Global Customer Coalition has sent a letter to Judge Glenn asking him to reverse the appointment of James Giddens as Trustee for the MF Global Bankruptcy case.
Apparently Mr. Giddens law firm's largest customers and his own clients in other matters are J.P. Morgan and Price Waterhouse.
J. P. Morgan at least has enjoyed a somewhat contentious relationship with the customers' interests so far. There is strong feeling that this represents a substanial conflict of interest, and has been carrying over into some of the statements and decisions that have been made by the trustee.
It will be interesting to see if the Judge concurs. I cannot determine the merits of this, obviously. But I could understand how customers might be concerned, especially given some of the more arbitrary actions of the past few weeks.
The market was running the usual daily routine, with stocks grinding higher and gold under pressure, but in the last hour Fitch came out and warned of US bank exposure to Eurozone debt, and stocks folded quickly, and took gold and silver down with them.
The US dollar was remarkably lacksadaisical. Option expiration in the metals is next week. And it is a holiday shortened week in the States for the Thanksgiving holiday. Trading should be a real treat. I am probably going to take Friday off and catch up on my reading and some work in preparation for the winter.
I believe THIS week is a stock option expiration, so we might see more gimmicks like this as the market coils within a very obvious symmetrical triangle which we have previously noted.
I had a heavy stock short by the last hour as I sold the SP index to cover a bullion position even more fully, and took some of the short off in the after hours session.
Short stocks and long bullion is still making sense if you can get a sense on how to play it. But for 99 percent of investors, staying in the fundamental trends with a time appropriate portfolio allocation is by far the most effective course of action based on my experience.
