Today is quadruple witching. Stock index futures, stock index options, stock options, and single stock futures expire today. Expect volatility.
Part of this week’s up-move is attributable to buy side bias in quadruple witching. It is not uncommon for such gains to reverse on the following Monday.
Yesterday we informed you that according to our algorithms massive short squeeze was occurring in gold and miners especially GDXJ. We also took a position in GDXJ on the short side.
Such short squeezes tend to fizzle out unless there is a new fundamental development
New high in the pre market and taking the risk of the portfolio down.
On the other hand we could see significant profit taking if everyone follows the trend live below.
GOLD: Taking a new short in GLD after the short covering. We also informed you that smart money was selling into the strength.
Gold futures are at $1313, silver futures are at $20.75, and oil futures are $106.40.
S&P 500 resistance levels are 1975 and 2000 ; support levels are 1925 , 1900 and 1875 .
DJIA futures are up 26 points.