Morning Commentary for Friday Mar 19, 2010 – Quadruple Witching

by Tom Nunamaker on March 19, 2010

Quadruple Witching is today!. This is when contracts for stock index futures, stock index options, stock options and single stock futures all expire! This event CAN cause extreme volatility in underlying stock prices as well as the overall market.

That said, market action going into the open is weak. S&P futures are +1.50, EUR/USD is -0.0065 (US Dollar is stronger), 30-Day Federal Funds are flat, Gold is -3.2. Nothing is on the economic calendar today and no corporate news so the market could be lackluster today except for Quadruple witching.

The S&P futures are consolidating a bit from 1165 to 1170. If we go above 1170, the shorts will squeeze the market higher and is a classic signal to go long. Don’t ignore the bigger uptrend when doing non-directional trades!

Smile.. it’s Friday!



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