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To: MythMan who wrote (417127)	8/16/2011 10:35:32 AM
From: Rarebird	Respond to of 436258

True. But this rebound is simply a force of nature and those who fight it are finding out that the beach ball doesn't want to be held underwater. The ball wants to move higher and reach a level of equilibrium before rolling over again. A rally into options expiration this week will suit the big options short-sellers who are looking to cover their underwater put options at a profit. Next week starts a new options cycle, but this week, those short sellers are probably going to be covering the hedges (short positions in the futures) as they cover their rapidly-dropping puts. This tends to give the market an upward bias going into expiration especially if the futures have moved past their typical 50-point minimum for adding to hedges, which this market certainly has done in the last few weeks.