(Friday Market Open) Halloween is still more than a month away, but today looks like it might be a good day for a “witching.” A “quadruple witching,” actually.
Friday marks expiration for index futures and options and stock futures and options, the source of the “quadruple witching” expression. This could explain some of the big moves the market made on Thursday when two key U.S. indices hit record highs amid what appeared to be some re-balancing action in ETFs.
It also could mean increased volatility and higher trading volumes, especially near the open and close Friday as contracts get executed and active traders look for investment opportunities. Witching day is generally a non-event for long-term investors, but it’s something to consider at least being aware of if the market starts making some gyrations as the session advances.
If the market does gyrate, it’s unlikely going to be due to any earnings or data news. There’s just not a lot out there. Next week could get more interesting as the Fed gathers for its meeting starting Tuesday and Dow Jones Industrial Average ($DJI) component Nike (NKE) reports earnings. Also, the market might end up being
With the fear over trade between the United State and China seeming to have lessened, that leaves market participants to focus on a U.S. economy that is apparently healthy, inflation that isn’t troublesome and corporate earnings that by and large have been solid.
Investors appear poised to continue digesting the latest headlines concerning trade tensions between Washington and Beijing as Canada and the United States continue trade talks.
The main focus once again seems to be tariffs on China, but earnings late yesterday are also being digested as two major U.S. companies reported.
The market seems stuck between embracing risk and stepping more cautiously as trade winds continue to blow. There’s not a lot of data or earnings to look at in the days ahead.
The cautious optimism that helped lift stocks Thursday appears to be intact after strength in overseas markets early Friday.
The market appears a bit more optimistic this morning amid news that U.S. and China might meet again to discuss trade and after the government issued a benign reading on consumer prices.
Anticipation appears to be the sentiment this morning as investors seem to look toward Apple’s event and commentary from central banks.
After a bit of a firmer start to the week, US stock futures this morning are suggesting a sustained bounce isn’t in order to start off Tuesday trading.
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