Friday Roundup: A Really Boring Quadwitch

September 18, 2009




A REALLY BORING QUADWITCH

It wasn’t a spectacular day, that’s for sure — more like a low scoring extra inning baseball game. But it was quadwitching nonetheless without any runs or hits as in volume. Whatever manipulations and adjustments needed to be made must have been done throughout the current week. What else could it be?

Volume was low for this type of event and breadth was relatively flat.

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Comments

[Roger Knights:]

"Let's see, the [S&P] index was up but SPY was down. This must be quadwitching related."

But isn't it too late in the day for that? Isn't it more likely some large Somebody thinks he "knows something urgent"? Why else exit a position (or enter a short) so suddenly, which prevents him from getting a good fill?

Sep 19 12:45 AM

[Karl Liesman:]

The market players might just be protesting against the oncoming regulation by keeping it boring. GS is pushing for 3 year performance to set compensation, the industry is shifting toward longer term (boring) performance in exchange for avoiding non fundamentally driving movements in asset prices. The government might be thrilled at this prospect, while short term traders are irked, and will probably go the way of the dodo bird soon.

Sep 19 12:46 PM

[Albertarocks:]

David, I really appreciate your presentation of charts you select as important enough to take a look at, and I pay attention to your comments... even though some of them are just casual observations.

But I hadn't noticed the last minute drop in SPY. That puts up red flag for me. It makes me suspicious that somebody knows something important. Maybe it's just a more or less meaningless adjustment, but my suspicious ming makes me wonder if there's going to be a serious pullback beginning Monday. I think this market would be a lot healthier if there was at least some sort of breather. At the very least, bulls wouldn't be biting their nails as much if the market wasn't at such overbought extremes at a time when there are negative divergences everywhere.

Thanks for the line-up of charts. It contains some that I normally wouldn't look at.

Sep 19 01:47 PM

[WTP2:]

SPY and all it components went x-dividend by the amount of the difference - it does this at the same time every op-ex quarter close.

Sep 19 05:48 PM