Hand to Hand Combat in the Options Pits
Things are really starting to get wild. CNBC should just eliminate the NYSE trading floor shots and replace them with battle scenes from "Hamburger Hill" or some of the medieval battles in "Lord of the Rings". Basically, everyone is out for blood today as panicked put and call holders are getting barbecued with Goldman's flamethrowers or getting bludgeoned to death by spiked clubs.
The games started on the open with moonshot moves in RF, ZION, STI, etc. as panicked short sellers ran for the hills.
Then the "Oil Glut" report came out, and once USO spiked up, everyone started dryhumping OIH, XLE, GDX, etc. But then came a sudden collapse in gold and oil, and immediately any and all commodity, emerging market, infrastructure stocks were sold with the utmost urgency.
That sent stocks down and the robots immediately started playing the "failed double top" play by shorting aggressively for the "net big leg down".
But unfortunately, the massive bout of selling intraday left most REITs, retailers and banks completely unfazed.
And as the QQQQ's blew out to new highs led by the BRCM meatball, everyone looked around and started second guessing the idea of shorting.
Just the same old battlefield tactics for Options Expiration.
Any stock that was heavily shorted was skying non-stop. Examples like SWN, FSLR.
Of course, banks, mortgage insurers, retailers, etc. were unfazed through it all. Check out the non-stop meltup in Wells Fargo:
And any stock with upside momentum that looked like it was going to break out was shanked. Pick any gold stock today. Completely smoked.
"Hard Asset" plays got bombed, despite the repeated, tiring, clarion calls of:
"This Is It!!"
"It is Now!!"
"OTC Derivatives are going to kill us all!!"
"Gotta be in it to win it!"
"It's up to $1,650, and then to Alf's numbers!"
Who the heck is Alf anyway? The one from Sesame Street?
LOL...
Anyway, just more of the same with all sorts of junk being bought today. Like Furniture Brands hitting new, 52-week highs..
Who is going to stop the consumer?
Funny how Goldman's efforts to squeeze out shorts in consumer and finance stocks and blow away call buyers on "Gloom and Doom" sectors creates a self-perpetuating, self-fufilling momentum on its own.
How else can the retail sector be performing so well with consumer confidence waffling around world record lows?
Today's intraday chart on the OIH pretty much sums up the absurd stop-running action today....
Watching these intraday charts during Options Expiration, I feel like I'm watching The Outer Limits....
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