[OAC]

Looking back, today was the strangest option expiration day that I have ever witnessed. It all started last night during globex session. At about 9pm EST usually a very quiet period, as I was looking at some long-term charts on my computer, both ES and YM started exploding upward. I thought to myself, that is indeed strange. If there was an unexpected international event, it is usually negative, but what possible positive news could there be when only the Asian markets were open? Then all night long the US index futures were having wild swings that basically led to nowhere.
Then the regular trading session opening today at 9:30 EST was the most treasurous that I have ever seen. It immediately shot up at great speed to surpass globex high only to be followed by an even more speedier collapse. Then there was more wild swings until 11am EST. By noon time the volume and the pace was back to normal. After 1pm EST, all the volume dried up for the rest of the day as if all the options expiration unwinding activities finished early. Not only that, the average volume during this period were well below that of a a normal day. Anybody has a good explanation for all this?

[That One Guy]

The amount of rotation in the current markets alone, seems to be wild. Money is flowing in and out, all over the place. Maybe all this recent sector rotation craziness, has something to do with this OPEX?

Originally Posted by OAC »

Looking back, today was the strangest option expiration day that I have ever witnessed. It all started last night during globex session. At about 9pm EST usually a very quiet period, as I was looking at some long-term charts on my computer, both ES and YM started exploding upward. I thought to myself, that is indeed strange?

You should have seen the huge spike DOWN on silver, almost 150 cents during that timeframe. Remember that limits were abolished on Comex metals back in 1987 (source: New York Times) thus leading to speculation there was an element of forced liquidation during the Asian session that precipitated this decline.