What is Quad Witching? Generally there’s a great deal of confusion concerning the term “quad witching” and what this day may constitute in financial markets. As a result, we would like to take this Quad Witching Friday, March 19, 2010, and demystify the phenomenon once and for all. “Witching” signifies the expiration of an entire group of
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Kicking of the June 15-19 trading week, the Dow Jones Industrial Average and S&P 500 both sold off well over 2% and erased previous gains for the month. Should history repeat itself, U.S. equity trading this week will show marginally increased volatility and volume due to the "quadruple witching" day occurring on Friday. The significance
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No one seemed to questioning the vicious buying of Bank of America (BAC) and Citi Group (C) on a Wednesday where stress test leaks suggested the two banks will need an additional $35 billion and $50 billion of common equity. Does the transparency of major U.S. banks' financial needs warrant the KBW Banking Index's gain
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U.S. equity markets ended only slightly lower on Tuesday as early morning economic data started off the day with a spurt of confidence. The ISM Non-Manufacturing report gauged Chicago area service related industries deteriorating at a lower rate than previous months in April. The report clocked in at 43.7, above the markets estimate of 42.2
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Taking note of the information at hand Monday yields little new information for the economy on a day that had been scheduled as the release of TARP stress test results by regulators. Instead the S&P 500 and equity markets are trading higher on lower than average volume due to an unexpected jolt in pending home
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Economic indicators released Friday morning cited less rapid deterioration in the manufacturing sector, more optimistic consumer sentiment, and lower factory orders. The first released Reuter's/University of Michigan Sentiment report inspired U.S. equity futures higher before diving into the red after the manufacturing numbers and news from the government was released. The lack of confidence in
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Thursday may have marked the end to a furious rally by speculative investors and traders as U.S. equity valuations have moved higher contrary to deteriorating economic conditions. Continuing jobless benefits have risen to new record levels as 630,000 more Americans filed new jobless claims in the previous week. Income and outlays decreased more than expected
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While the Swine Flu "epidemic" has stimulated substantial buzz among global equity markets, the lasting effects of the virus on the consumer are limited. The virus is serious and deserves appropriate responses by the WHO and individual nations but has only killed individuals in nations where timely detection and health care response is limited. Cases
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The Chicago Board Options Exchange Volatility Index, commonly known as the VIX, has secured a spot in the limelight as technical traders and six o'clock news broadcasters have religiously cited the measure throughout the unfolding economic crisis. The index is sometimes referred to as the "fear gauge" as it rises during times of increased market
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Speculators placed bets against disease fearful consumers during pre-market trading but confidence re-emerged as markets opened and earnings from Humana (HUM), Whirlpool (WHR) and Corning (GLW) beat estimates. Predictions from most corporations and analysts leading into 2009 Q1 were unrealistically low, causing many firms to beat estimates this earnings season. Each time a major corporation reports another “earnings beat” the confidence of bulls increases parallel to the complacency of bears.
The proof may be in the pudding but the pudding isn’t earnings season… The equity market will show its true colors as it faces hard economic data without “better than expected earnings” contributing to the euphoric aura surrounding current market projections.