December 18, 2009
QUAD WITCHING WEIRDNESS
This week saw a heavy dose of market moving news featuring the Fed's statement; Jobless Claims; commodity and currency "helter skelter"; a mixed bag of earnings news; perhaps some dangerous events between Iran/Iraq; and, wrapped-up by quad-witching manipulations.
Strong earnings from ORCL and RIMM were featured bullish stories today and financials reversed their recent losing trend perhaps the result of options expiration shenanigans.
Volume rose and is typical for an expiration day while breadth was positive.
Today's quad-witching went along as weirdly as most would expect. Away from US markets things aren't doing that well making today's end of day "stick save" more about the mechanics of the expiration than anything else.
We head into the holidays in earnest next week and volume should decrease while volatility may increase as a result. It's most likely a good time to spend on the sidelines with family and friends unless something untoward happens like in Iraq and Iran. The latter would like nothing better than to cause trouble during our most important holiday periods.
That said, the news cycle of economic data continues on Tuesday with GDP and Existing Home Sales, Personal Income & Spending and New Home Sales on Wednesday and wrapping up on Thursday with Durable Goods Orders and Jobless Claims.
Let's see what happens and you can follow our pithy comments on
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