JBW, re:...don't forget that this is triple witching week
Actually, it's only double witching week, but I get your drift. It is possible that arbs, etc., were settling matters today; if so, I don't believe the black magic is finished.
Take a look at the 2pm trading hour -- volume was dismal and the range was quite narrow. (This would be the proverbial waiting game, when the boys on the floor suspect that the arbs are in a bind.) Then, BOOM, heavy trading and price erosion in the final hour.
Options action is often settled prior to Friday. Assuming options influence, we're faced with what appears to be a neutral picture: Mon/Wed being positive, Tues/Thurs negative.
Just a guess, but I'd say the players are feeling gutsy and have postponed the inevitable. If so, tomorrow could be HELL-ish.
Who knows, all the action could be unrelated to options -- simply indecision. But, that's not good either.
ps. My "guess" is based on implied volatility (when plotted across the week, against DELL volume), and on MAY options volume. |
