Seeking Alpha

David Fry's  Instablog

David Fry
Send Message
David Fry writes a subscription newsletter focused on technical analysis of exchange-traded funds, called ETF Digest (www.etfdigest.com). Dave founded the ETF Digest in 2001 and was among the very first to see the need for a publication that provided individual investors with information and... More
My company:
ETF Digest
My blog:
Dave's Daily
My book:
The Best ETFs: U.S. Equities (A Companion Guide To Building Your ETF Portfolio)
  • OPTIONS EXPIRATION DISTORTIONS 0 comments
    Apr 20, 2012 7:54 PM | about stocks: SPY, IWM, QQQ, AAPL, XLK, MSFT, IGV, ITB, BAC, XLF, CVY, IEF, TLT, HYG, UUP, FXE, GLD, GDX, SLV, JJC, DBC, USO, UGA, XLE, DBA, EFA, EEM, EWJ, EWG, EWP, EWY, EWZ, RSX, EPI, FXI

    openingimage

    Beating much lower expectations can lead to a short squeeze and this was evident the past few days with some financials and Friday with Microsoft (NASDAQ:MSFT) which beat earnings estimates by 3 cents. Remember, MSFT is one of the largest hedge fund holdings so pumping it higher seems easily job one. MSFT was up nearly 5% after the report which may strike some as an outsized gain. But the spin was the company reported good gains from the corporate sector meaning CFOs are loosening their purse strings. How long can you run XP anyway? The boys in the options pits must be chasing down options in MSFT and those silly bets made on Apple (NASDAQ:AAPL) calls.

    The other big news on the day was that the IMF (mostly controlled by U.S. taxpayers) will pony-up another $400 billion in freshly minted dollars to rescue the euro zone once again. Even the Bank of Japan admitted this gesture (thank you America!) will only buy some time if austerity and reforms aren't implemented. And, right on cue, we have French elections on deck this weekend with polls indicating Sarkozy is toast. This makes his deals with Merkel & Co toast as well. So with the socialists back in control of Europe's second largest economy don't expect much in the way of austerity and reform. That's not on any socialist's agenda.

    <READ MORE>

    Stocks: SPY, IWM, QQQ, AAPL, XLK, MSFT, IGV, ITB, BAC, XLF, CVY, IEF, TLT, HYG, UUP, FXE, GLD, GDX, SLV, JJC, DBC, USO, UGA, XLE, DBA, EFA, EEM, EWJ, EWG, EWP, EWY, EWZ, RSX, EPI, FXI
Back To David Fry's Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (0)
Track new comments
Be the first to comment
Full index of posts »
Latest Followers

StockTalks

More »

Latest Comments


Posts by Themes
Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.