Post Expiration Blues Strikes Again

June 19, 2006 · Print This Article

As I have mentioned countless times over the past few months, the day following options expiration is historically bearish. Today’s trading certainly lived up to the historical billing as all of the major indices closed lower on the day. SPY nearly clsoed the gap that was established last Thursday and I would guess that fully closed by weeks end. The period following June options expiration has been weaker than the average post-expiration week so be aware of this situatiopn going forward. Mondays and Thursdays are particularly weak. I go into further detail in the June options expiration report.

Unfortunately, I have to keep it short tonight and a post tomorrow is questionable. I will post the RSI numbers tomorrow and I will be back to writing on Wednesday. We have some exciting things going on here (new strategies, etc.) and we hope to have all of the details in the next few weeks.

RSI Wilder (5) for June 19, 2006