It has been a very random market for two weeks now, and what better way to cap it off than with a wild flurry of index rebalancing and option games? We had huge volume today as some big blocks crossed at the close and the indexers made their required buys and sells. In addition, things like AAPL were pushed to strike prices.
It is interesting to see some of the crazy action today, but it sure didn't do anything to clarify this market. We are still stuck in the middle of a trading range and have no leadership and few themes or trends. We did have the reflexive action to moves in the dollar, but we have been decoupling from that a bit lately.
You can be sure things will be much quieter next week, but that doesn't necessarily mean that we won't have some good trading. The trading atmosphere around holidays is often quite upbeat, and traders have a tendency to create their own action. If we stay attentive, we should be able to find an opportunity.....