I doubt that ECU is directly affected by triple witching day. ECU is not margin-elligible for most accounts and therefore is not in play with outstanding options or futures contracts in Canada, although perhaps there are OTC products issued. The main markets are very much driven by leverage to derivitives. Note how this week the financials have been magically carried higher, and the gold and commodity stocks have been driven into the ground. This is a sector-wide phenomenom and ECU is carried in the same momentum.

My guess is that during the last quarter, plenty of options on financials going highe were written, and the late surge this week is to ensure those derivitives finish in the money. Conversely, the commodities are under presure to ensure call options expire worthless, so the underwriters keep the premium they gained from selling the options.

Once the expiry passes, then the markets will return to a less manipulated playground, and there will be no incentive for players to buy or sell stock groups just to move a sector higher or lower. Keep in mind that some institutions can commit hundreds of billions of dollars of buying power into these transactions, and yes, they CAN move the market for a short time. That is of course a breach of conduct but with the SEC unwilling to do anything, it is something that all retail investors just have to put up with. Too bad Elliott Spitzer could not get past his whoring because he was the one guy willing to go after the crooks.

Next week will be a fresh playing field. After we endure the manipulation associated with a new treasury bond offering, we should see trading improve.

cheers!

mike