When I think of witches immediately my attention goes to scary, not to get religious but I was raised Christian so when you talk about witches it presumably has a negative connotation. This week the market is going to see a quadruple witching. This means extremely volatile market conditions and volume that is through the roof.
A quadruple witching is when stock options, stock index options, stock index futures, and single stock futures all expire simultaneously. Quadruple witching tends to spike volume in the markets, it’s also considered to be some of the most volatile trading days leading up to this day.
We also have economic news coming in hot and heavy this week, I don’t think crazy swings in the market are out of the question. Monday we have the consumer credit report, Thursday we have jobless claims news and the federal budget. With this news paired with the quadruple witching don’t be surprised to see some crazy moves in the market.
With this crazy week coming up just know that if crazy movements do happen that there is a reason for that. With the Standard and Poors at all-time highs, we may see the bears come out of their dens for the “Witching Hour.” (last hour of trading on Friday)