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Strategies & Market Trends : Classic TA Workplace

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From: Henry J Costanzo	12/8/2005 1:50:12 PM
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Opex.....Triple witching.....Just ran across something which is news to me.....to the effect that the triple witching Dec opex got under way THIS MORNING!!..?? FYI: <<This morning marks the quarterly rollover of index futures contracts and the start of triple-witching options expiration. There are very good reasons why this seven-day period will be extremely uncomfortable for the bulls. Let's start with the most likely culprits behind Tuesday's downturn. Many institutions and large traders carry futures positions through expiration periods. To get more advantageous rollover prices, they do their best to knock down those markets ahead of the transfer date. Program selling marks an efficient method to accomplish this heavy-handed goal. So it should be smooth sailing now that index futures have moved to the March 2006 contract, right? No, not really. There are way too many bulls in the system as triple-witching kicks into gear. This major imbalance predicts a period of volatile whipsaws, reversals and stop-running through the closing bell on Dec. 16.>>

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