ES Journal Archive (2006 - 2008)
- Thread starter Buy1Sell2
- Start date
- Status
Bernanke speaks until 2.....the pain...the pain
Profit 2 hit and filled at 819. Now long 25% of position looking for a move up to 825 or so with a trailing stop. I added to my position at 814 with a stop at the same place 813.40.
Net profit of 4 pts per contract at this point. The low of day was one tick away from getting stopped out....
Yeah I know, I use the same type of thinking when trading. For instance IF the market doesn't breach today's highs THEN this channel will be resolved to the downside, and that's a BIG IF.
Heh, seems like somebody else already has ... extensively.
THIS PLAY ON OPTIONS WILL MAKE YOU MONEY
Taking Stock with John Crudele
Good trading,
Jimmy
todays market is one of stop busting and retracement.
... at some point the NY Post will archive the above listed article, so I'll past the contents here for permanent reference.
***
February 15, 2007 -- THE stock market has a strong tendency to stage impressive rallies during the five trading days before options and futures contracts expire, according to research conducted for The Post.
In fact, Tuesday's triple-digit gain in the Dow Jones industrial average was just one of seven times in the past 12 months when the market picked expiration week to strut its stuff.
Bill King of Ramsey King Securities and I noticed this tendency a while ago, so I asked researcher Michael Panzner to run the numbers.
Panzner, who has written an upcoming book for publisher Kaplan Business called "Financial Armageddon," was asked to go back only one year in his research, although the trend was noticeable before that.
What we found was that since March 2006, the market 58 percent of the time has rallied at least 100 points during one or more of the five trading days before options and future contracts expire, which happens on the third Friday of every month.
Tuesday's gain was barely triple-digit - just over 102 points with the final push coming during run-off trades after 4 p.m. At its peak on Tuesday the market was up 105 points.
Stock prices were also strong yesterday, ending up 87.01 at 12,741.86.
The other options-week home runs came on March 10, 2006, five days before a "triple witching" period when stock and stock index future contracts as well as stock options expired. The Dow gained 104.6 points that day.
Then there was a 194-point rise in the Dow on April 18, three days before that option-expiration period.
Last June, there were back-to-back gains of 198 points and 110 points on the 14th and the 15th, although the prior two-day period was volatile on the downside. (That week was only counted once in coming up with the 58 percent figure.)
And in July there was a 212-point gain two days before that month's expiration, a trend that continued in August with a 132-point gain three days before expiration.
(There was also a 96-point gain two days before expiration that month that doesn't fit into our research criteria and wasn't counted.)
September had a 101-point gain in the Dow three days before expiration, and then the trend took a break for the remainder of 2006 and the first month of this year.
The coincidence of triple-digit gains during options expiration weeks is more impressive when you realize that there were only 11 other such jumps in the 38 other weeks of my study period.
***
JJ
***
February 15, 2007 -- THE stock market has a strong tendency to stage impressive rallies during the five trading days before options and futures contracts expire, according to research conducted for The Post.
In fact, Tuesday's triple-digit gain in the Dow Jones industrial average was just one of seven times in the past 12 months when the market picked expiration week to strut its stuff.
Bill King of Ramsey King Securities and I noticed this tendency a while ago, so I asked researcher Michael Panzner to run the numbers.
Panzner, who has written an upcoming book for publisher Kaplan Business called "Financial Armageddon," was asked to go back only one year in his research, although the trend was noticeable before that.
What we found was that since March 2006, the market 58 percent of the time has rallied at least 100 points during one or more of the five trading days before options and future contracts expire, which happens on the third Friday of every month.
Tuesday's gain was barely triple-digit - just over 102 points with the final push coming during run-off trades after 4 p.m. At its peak on Tuesday the market was up 105 points.
Stock prices were also strong yesterday, ending up 87.01 at 12,741.86.
The other options-week home runs came on March 10, 2006, five days before a "triple witching" period when stock and stock index future contracts as well as stock options expired. The Dow gained 104.6 points that day.
Then there was a 194-point rise in the Dow on April 18, three days before that option-expiration period.
Last June, there were back-to-back gains of 198 points and 110 points on the 14th and the 15th, although the prior two-day period was volatile on the downside. (That week was only counted once in coming up with the 58 percent figure.)
And in July there was a 212-point gain two days before that month's expiration, a trend that continued in August with a 132-point gain three days before expiration.
(There was also a 96-point gain two days before expiration that month that doesn't fit into our research criteria and wasn't counted.)
September had a 101-point gain in the Dow three days before expiration, and then the trend took a break for the remainder of 2006 and the first month of this year.
The coincidence of triple-digit gains during options expiration weeks is more impressive when you realize that there were only 11 other such jumps in the 38 other weeks of my study period.
***
JJ
profit taking.. before the weekend. 1456.50 1st target.
- Status