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Daily Market Report:June 18th, 2010
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Typical Quadruple Witching Expiration
Most options expirations are a snooze after the first two hours of trading. Today was quadruple witching expiration. This is when stock index futures, stock index options, stock options and single stock futures all expire. When it was all said and done it was a volatile and choppy week with the S&P 500 Index gaining 26.00 points for the week. Last week we said that the market could rally throughout options expiration as there were many put contracts bought in early June by the small investor and the large institutions would not let them collect and make those contracts expire worthless. This is the one week of the month that traders and investors must be very careful. Next week could be setting up for a market pullback, however, the current pattern in place is not perfect. Once we see any signs of weakness we shall look for further downside. In the meantime, remain a short term trader as that has served us best since hitting the recent lows in May. Please remember that 2010 is a traders market and there will be opportunities on both the long and short side. The master resistance levels for the SPX are 1118, 1137, 1153, 1171, 1186, 1205, and 1220. The master support levels for the SPX are 1103, 1084, 1070, 1052, 1038, 1020, 1006, 989, 974, and 957.
August crude finished the session higher by 0.22 to close at $78.26 a barrel. The master resistance levels for crude are 79.00, 84.00, 89.00, 95.00, and 100.00. The master support levels for oil are 74.00, 71.00, 67.00, 63.00, 59.00, 54.00, and 51.00. Please remember oil is very sensitive to adverse weather, geopolitical events, and the U.S. Dollar.
August gold finished the session higher by 9.60 to close at $1258.30 an ounce. This was another new all-time closing high for the precious metal. As long as the central banks including the Federal Reserve Bank in the Unite States continue to print money to inflate the markets back to health gold could trade higher. The only way gold will truly decline sharply is if the markets go into a deflationary tailspin. In that case everything would decline and gold should still hold up better than everything else. Once gold pulls back or presents a pattern on the charts it can be bought again. The master resistance levels for gold are 1272, 1287, and 1308.The master support levels for gold are 1251, 1236, 1218, 1202, 1182, 1167, 1148, 1134, 1114, 1100, 1087, 1067, 1035, 1016, 1003, 984, and 971.
The 10 year bond yield finished the session higher by 0.033 to close at 3.223%. The resistance levels for the yield are 3.31%, 3.39%, 3.49%, 3.57%, 3.68%, 3.77%, 3.88%, 3.96%, 4.08%, 4.16%, 4.28%, and 4.36%. The support levels for the yield are 3.21%, 3.13%, 3.03%, 2.95%, 2.85%, 2.78%, and 2.69%.
In summary, the market chopped it's way higher during a very volatile options expiration week. This volatile move higher was really not a surprise to us or our subscribers. Next week we should resume a much better week of trading as the institutional money gets back to actual trading and stops looking to pick on the small contract option trader.
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Market Breadth
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NYSE |
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NASDAQ |
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| Advancing Issues |
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2,167 |
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1,448 |
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| Declining Issues |
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1,637 |
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1,224 |
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| Unchanged Issues |
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134 |
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124 |
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| Total Issues |
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3,938 |
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2,796 |
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| New Highs |
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103 |
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57 |
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| New Lows |
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40 |
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34 |
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| Up Volume |
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2,963,326,985 |
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1,002,858,230 |
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| Down Volume |
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2,187,993,859 |
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840,738,575 |
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| Unchanged Volume |
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201,558,793 |
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98,754,609 |
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| Total Volume |
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5,352,893,480 |
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1,942,351,414 |
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Most Actives
| Symbol |
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Closing Price |
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Change |
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Volume |
| C |
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4.01 |
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+0.05 |
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670,926,532 |
| SPY |
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111.73 |
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+0.13 |
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172,587,286 |
| BAC |
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15.82 |
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0.00 |
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104,751,750 |
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Biggest Gainers
| Symbol |
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Closing Price |
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Change |
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Volume |
| C |
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4.01 |
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+0.05 |
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670,926,532 |
| SPY |
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111.73 |
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+0.13 |
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172,587,286 |
| BAC |
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15.82 |
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0.00 |
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104,751,750 |
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Biggest Losers
| Symbol |
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Closing Price |
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Change |
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Volume |
| CASB |
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1.09 |
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-0.16 (12.80%) |
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345,175 |
| BANR |
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2.70 |
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-0.84 (23.73%) |
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1,461,018 |
| CELH |
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1.66 |
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-0.25 (13.09%) |
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70,760 |
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