Thin Liquidity and Options Expiration Thinly liquid markets with volatility related expiration events (options expiration Friday) are known to lead to exaggerated or exasperatingly narrow moves in either direction to chop out weak hands/stops and it could be the theme for today’s price action. Models indicate the theme to continue until normal liquidity and volumes (more…)

Tread Lightly in this Light Trading Compulsive trading could lead to hazardous outcomes. It is even more applicable in low liquid markets and market days. Exaggerated moves likely in either direction to wipe out weak hands/stops until normal liquidity and volumes return post holidays. Structurally, we are still in the bull territory. A daily close (more…)

Bear – Nice or Naughty? Christmas eve shortened markets to experience low liquidity and spiky moves primarily driven by stop hunting of shorts. Exaggerated moves likely in either direction to wipe out weak hands/stops until normal liquidity and volumes return post holidays. Structurally, we are still in the bull territory. A daily close below 3180 (more…)

Holiday-thin Liquidity to Drive Spiky Moves Holiday thinned markets to experience low liquidity and spiky moves primarily driven by stop hunting. Exaggerated moves in either direction to wipe out weak hands/stops until normal liquidity and volumes return post holidays. Structurally, we are still in the bull territory. A daily close below 3180 is needed to (more…)