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Comments on Dow Nearing Technical Extremes: Short Opportunity On the Horizon
by Andrew Crowder
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    Excellent presentation. I wonder why the market is usually up the day before and on the day of option expiration, which will be tomorrow (5/18). Excellent historical briefing. omooc
    2007 May 17 08:27 AM Reply
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    A quick check of the inverse Dow ETF, DOG, and the double inverse Dow ETF, DXD, shows that in the last two weeks, a lot more shares have been trading. I wonder if any of that relates to options expiration. If not, it's either investors getting ready for a possible drop in the Dow or investors giving in to its relentless rise. In fact, on Tuesday and Wednesday of this week, about twice as many shares of DXD traded as normal.

    I was also looking at the economic calendar to see if any reports might trigger a pullback. On Tuesday, we get the durable orders report, Thursday it's new home sales, and Friday it's existing home sales, but I don't think those'll be enough to startle investors unless the numbers are really bad one way or the other. Steve Ferris
    2007 May 19 01:29 PM Reply