Apparently I'm really into the pictures and witty headlines thing now. So maybe that makes for lighter reading and is more enjoyable for the TSM afficiando. That being said, I thought I would provide a little tutorial for what's coming tomorrow (Friday, June 19th). Its... dun dun dun... a quadruple witching day for the market.
What's that mean -- well, this occurs occurs on the 3rd Friday of every quarter, and is when 4 different types of derivative instruments (stock options,single stock futures, options on index futures and certain index futures expire) expire on a single day.
Starting to sound like a routine post with too much technical terms, well the basic effect of this day is that volume is increased by 55-60% from an average day in the market. Couple that with the fact that the daily volatility of the market currently reads above 30 (which is an indicator that the market is volatile right now, historically speaking - but not really as volatile as when the reading was in the 50s and 60s over the past 6 months) --- and you COULD get a recipe for a big move in the markets. Maybe not. Its impossible to know - tom cruise on a mission style. But with the market momentum going down this week (altho not currently today) - albeit on light volume - maybe thats a snowball waiting to become an avalanche.
BOTTOM LINE - no one knows, but grab some popcorn, turn on the soundtrack to Elphaba singing "defying gravity" and see if the market swings lower in a big way Friday!
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