Options Expiration Comes To A Close, Markets Drop

A minor pivot day was alerted for today and the market dropped accordingly. Options expiration has come to a close and the institutions no longer have a reason to hold the market up. The massive rally late yesterday was a perfect fake out as called. The obvious timing of the Goldman Sachs Group, Inc. GS and BP plc (ADR) BP news sent the shorts running and the last few put holders screaming away. The massive late day surge in the markets even lured some call buyers in for an attempt at some easy money on a possible rally today. Needless to say, the whips of options expiration have been well documented to our Research Center and Intra Day Stock Chat members. The economic news has continued to be poor and the earnings have been average. Over the last two weeks, the run up in the markets has factored in great earnings as many stocks have jumped over ten percent. This type of run up into earnings means each company's report better be stellar. That has not been the case as Google Inc. GOOG and Bank of America Corporation BAC disappointed. The SPDR S&P 500 ETF SPY is getting hammered today, down 1.90%. The dollar is inching higher, gold and oil are getting crushed. The bear flag pattern on the SPDR Gold Trust (ETF) GLD is playing out beautifully. This was a call given in the Research Center. To get more analysis, guidance, swing trades and education, join the Research Center. Gareth Soloway Chief Market Strategist www.InTheMoneyStocks.com