Arete Thursday Newsletter
Quad witching is here. Are you ready? 💸📉📈
Quadruple witching is tomorrow. Are you ready?
Quadruple witching refers to a date on which stock index futures, stock index options, stock options, and single stock futures expire simultaneously. While stock options contracts and index options expire on the third Friday of every month, all four asset classes expire simultaneously on the third Friday of March, June, September, and December. The day usually plays out with a lot of volatility in the morning and then getting less and less as the day goes on as stocks “pin” to strike prices of the underlying financial instrument.
As stated before, The SPY and IWM are not going to go up while the QQQ goes down. One will follow the other. The magnitude might be different but the trend is the same. The 10-year Treasury hit 1.74% today and showing clearly we are heading to 2%. I still believe we have started to put in the bottom. However, we can backfill and retest so we need to be prepared.
The $QQQ hit $324 level and did not breakthrough. Instead, we broke down and are now out of the rising wedge and rolling. The 50-day moving average is acting like resistance which means institutional accounts do not think a bounce is imminent. We could test next to $304. The $SPY and $IWM actually showed signs of topping today. Key stocks reversed for the first time on the indexes. Note the move in $DE ,$CAT,$UAL,$CCl, All reversed and closed at the lows.
I have attached a video at the bottom where I give some stocks to short ideas and more of an overview on what happened today as well as what’s going on with the ten-year, $QQQ, a quick way to trade gappers, and the $WKEY NFT trade today. It’s worth watching.
Let’s look at the indexes
Let’s look at the stocks
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As always all investment decisions need to be made by the individual. We all have different risk profiles.No two people trade the same. Understand the buy points, stop losses, trims are suggestions. For example on stops. I want to see it close there at the end of the day. You need to develop your own process. I am willing to help and offer feedback.
Please make sure you Subscribe to Twitter! 👈and turn on notifications. There are times my updates are timely in regard to the Newsletter. I called key levels on the $QQQ today as well as the $WKEY and $UPST trades today.
Any questions please message me.
Thank you again for all the messages telling me how this Newsletter improved your performance and made you a better trader! Wishing everyone Massive success!
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