Page 494 - THE MARKET WHISPERER

490 PART 15 - Special Occasions, Special Rules

Special Occasions What You Need to Remember

Last day of the trading Volumes are likely to be low. The market
week (Friday) is generally not volatile after the first
two trading hours. It is wise to reduce
Options expiration days: quantities of stocks held for a swing.
the third Friday of every
month The market is not expected to be volatile.
Options expiration week Stock prices tend to hover near round
numbers.

High volatility is expected on Tuesday and/
or Wednesday. Low volatility expected on
Thursday and Friday.

Triple options expiration, As above, but even more extreme

“triple witching day”:
the third Friday of every
quarter

Interest rate decision day Do not trade beyond the first two
hours. Reduce quantities prior to the
announcement. Trading immediately
afterwards tends to extreme volatility and
can be highly risky.

Interest rate decision The week in which the announcement is
week due is typified by highly agitated trading
in advance of the public announcement.

End of quarter “window Institutional traders can be expected
dressing” to guard the market from lows, equip
themselves with strong stocks and exit
weak ones.

End of year Expect sales of weak stocks, while strong
stocks can be expected to maintain
uptrends. At the end of a weak year, the
market tends to continue falling. At the
end of a strong year, the market tends to
keep rising.