The Day After

April 24, 2006 · Print This Article

As I have stated repeatedly over the past few days, the Monday following option expiration is historically bearish. Today lived up to the billing although the decline was minimal. The day began with a sharp sell-off , but the bears could not sustain the trend lower. This was surprising given the current price of crude and the sharp decline in the Japanese markets. The Nikkei experienced a 2.8% decline , the largest one-day decline in two years. Events like this usually have an effect on the US markets, which is why I am surprised the decline was so limited.

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