Fed Meeting and Options Expiration This Week Means Watch Out

David Frost // Market Outlook


June 16  

This week is quadruple witching options expiration which means all options, monthly, weekly and quarterly options are expiring.

As a result, the large banks, brokerage firms and hedge funds will have their way with the market.  They will be wiping the stock market around to shake out all the weak hands, primarily those holding options will most likely get screwed to some degree.

If that wasn’t enough, the Federal Reserve is meeting this week.  They will make their interest rates announcement on Wednesday.  (Discussed in more detail in the video)

Normally, when the Fed speaks, the market will get an electric shock for about 15 minutes, then settle down.  All in all, the market tends to be positive following the Fed announcement.

If that wasn’t enough, Saturday is the Summer Solstice which generally signifies a turn in the market.  Therefore, we are aware of an up or down market into the end of the week, and expect some form of a turn into next week.  This is just a general rule of thumb, but tends to come true nevertheless.

Additional discussion found in the video including the small caps, interest rates, gold and oil.

Enjoy the video and further common sense technical analysis specifically designed for swing trading.

About the Author

Trading and investing in markets is second nature to some, but a mystery to others. The goal is to provide a forum where everyday people aspiring to be part time or full time traders will learn how view markets differently and profit beyond their wildest dreams.

David Frost