Market Whips On Options Expiration
The market jumped higher, sold to turn negative, surged back towards the highs of the day and has how turned back to the flat line, all in the first two hours of the trading day. For those of you following the market over the last few weeks, this does not sound like the norm. The volatile moves today are very unusual and are most likely due to options expiration. This will quiet down by the noon hour. Markets are likely to be flat for the day.
The SPDR S&P 500 ETF (NYSE:SPY) is trading at $112.42, - $0.03. The SPY has been as high as $113.15 and as low as $112.18. The dollar is slightly higher on the day with the PowerShares DB US Dollar Index Bullish (NYSE:UUP) trading at $23.60. +$0.06 (+0.25%). A strong dollar usually puts some pressure on the markets and may be one of the reasons the market has given up its solid gains after great earnings from Oracle Corporation (NASDAQ:ORCL) and Research In Motion Limited (USA) (NASDAQ:RIMM).
Chief Market Strategist