E-Wave for the S&P 500 Index

[JLS]

Erin didn't get what she expected ...

because she tends to over-analyze.

She wrote:

Today, we have a possible "upside exhaustion climax." We didn't get confirmation of the climax because Total Volume was so low today. This is a problem. Today was options expiration -- we should have seen more volume. Additionally, it was a strong rally day and Total Volume wasn't behind that either.

Here's the way I look at the last four days: The price gains of the last two days almost erased the losses of the previous two days. The volume of the last two days was also a little less than the volume of the previous two days. Price times volume is total money: the total money going higher over the last two days almost replaced the total money going lower over the previous two days. Makes perfect sense.

I also don't understand why she should see more volume on options expiration day. One reason is that American style options don't expire on Fridays -- they actually expire on Saturday. What's more, I don't see any advantage in monkeying with options on the last day of their trade, because it usually works out that the market maker will make his income (the difference between bid and ask) at the option trader's expense.

I didn't get what I wanted last week either. I exclusively do Buy/Writes and there is a stock I want to trade, but it's going down every day.

Patience grasshopper I tell myself, my time will come.