Posts Tagged ‘Triple Witchings’

Eight Trading Superstitions

black cat

Every profession has its own idiosyncratic superstitions.  In honor of tomorrow being Friday the 13th, I thought this would be a good time to discuss this topic.

Actors performing MacBeth will refer to it only as “The Scottish Play” for fear of being crushed by a stagelight.  Sailors never set foot on a boat with their left foot first.  The baseball player is perhaps the most tormented by ritual, from tapping the bat on home plate to never stepping on a foul line to the prolonged use of a lucky bat or glove way past what its condition warrants.

Traders and investors have their own set of superstitions, and these can seem every bit as silly as those we see in other walks of life.  That said, trading superstitions are very tough to let go of, even for the most logical and circumspect of market players. 

Let’s look at a few of them:

Never Sell a Stock Crossing 90 – There is a widely held belief that you never sell a stock you own as it crosses $90 per share because they almost always go straight to $100.  This concept is demonstrably specious, but I know 20-year veterans who will never be convinced otherwise.   

The Maiden Sacrifice to the Volcano - In times of market turmoil or in the midst of a heavy sell-off, many portfolio managers and investors believe that they have to blow out one position to appease the market gods, tossing a maiden into the volcano so that the island will be spared the wrath.  This thinking is as primitive as you get, but sometimes it feels good to toss out some AK Steel on a down 200 point day only to see the market rally.  If this happens once or twice, logic aside, you will swear by it.

Options Expirations/ Triple Witchings - “Never buy or sell on the third Friday of the month which is when monthly stock options expire.  And no matter what you do, stay away from everything on the four Triple Witching days of the year, when stock option, stock index options and stock indexes futures all expire together.”  Obviously absurd, but deeply ingrained in many investors.

Don’t Go Back Into a Stock the Third Time – This is a variation on the old “sticking your hand


continue reading


Tags: , ,




 
 
 

Zero Hedge

Iran Suffers Most Daily Death Toll Since COVID-19 Outbreak Began; NY Adds 3 More States To 'Mandatory Quarantine' List: Live Updates

Courtesy of ZeroHedge View original post here.

Summary:

  • NY releases latest numbers, adds 3 more states to quarantine list
  • Trump touts COVID-19 mortality rate improvement
  • GOP moves to test all convention attendees
  • Worker 'revolt' at University of Georgia
  • Beijing reports 8 foreign cases
  • South Korea reports 40+ new cases
  • Melbourne enters 6-week lockdown
  • India passes 700k cases
  • Iran sees record jump in deaths
  • South Africa tops 200k

* * *

Update (...



more from Tyler

Phil's Favorites

Up and Down

 

Up and Down

Courtesy of 

This stat from @SentimentTrader blew me away:

“The S&P 500 fund, SPY, has been up at least 0.5% for 5 straight days. That’s tied for the longest streak since its inception.”

I wasn’t taken aback because of how strong the markets have been recently, but that streak of five days sounded really small to me. I almost couldn’t believe it was right. But after looking at the data, the shock wore off.

The S&P 500 has gained >0.5% on 28% of all days (going back to 1993), so the likelihood of...



more from Ilene

Biotech/COVID-19

Is the COVID-19 pandemic cure really worse than the disease? Here's what our research found

 

Is the COVID-19 pandemic cure really worse than the disease? Here's what our research found

The economic impact of coronavirus restrictions can also take a human toll. mladenbalinovac via Getty Images

Courtesy of Olga Yakusheva, University of Michigan

The Research Brief is a short take about interesting academic work.

The big idea

The coronavirus pandemic catapulted the country into one of the deepest recessions in U.S. history, leaving millions ...



more from Biotech/COVID-19

ValueWalk

Error-Ridden PPP Data Show Taxpayer Funds Funneled to the Wealthy & Well-Connected

By Anna Peel. Originally published at ValueWalk.

Yesterday, the Trump administration released a limited collection of data about recipients of Paycheck Protection Program (PPP) assistance. The program has been rampantly mismanaged from the start, allowing big businesses and publicly-traded companies to exploit the program with little transparency or oversight. The data released yesterday has been riddled with errors, raising questions about the PPP’s integrity. All the while, actual small businesses – especially those run by people of color – have been left to struggle or close entirely.

Q2 2020 hedge fund...



more from ValueWalk

Kimble Charting Solutions

Here's Why QQQ and Large Cap Tech Stocks May Rally Another 10%!

Courtesy of Chris Kimble

The long-term trend for large-cap tech stocks remains strongly in place.

And despite the steep rally out of the March lows, the index may be headed 10 percent higher.

Today’s chart highlights the $QQQ Nasdaq 100 ETF on a “monthly” basis. As you can see, the large-cap tech index touched its lower up-trend channel support in March at (1) before reversing higher.

It may now be targeting the top of the trend channel at (2), which also marks the 261.8 Fibonacci extension (based on 2000 highs and 2002 lows). That Fib level is $290 on $QQQ.

If so, this upside target for $QQQ is still 10% above current prices. Stay tuned!

This article was first written ...



more from Kimble C.S.

Chart School

RTT browsing latest..

Courtesy of Read the Ticker

Please review a collection of WWW browsing results. The information here is delayed by a few months, members get the most recent content.



Date Found: Saturday, 14 March 2020, 05:51:16 PM

Click for popup. Clear your browser cache if image is not showing.


Comment: Crash in perspective - its Bad, and not over!



Date Found: Saturday, 14 March 2020, 07:49:29 PM

Click for popup. Clear your browser cache if image is not showing.


Comment: The Blood Bath Has Begun youtu.be/bmC8k1qmM0s



Date Found:...

more from Chart School

The Technical Traders

Big Funds to Pull Money OUT of Stocks: 2nd Wave to Hit Economy

Courtesy of Technical Traders

TOPICS IN THIS INTERVIEW:

-Big funds to pull money out of markets.

-Falling dollar to really start to benefit gold

-Gold miners showing signs of life.

-$2,000 gold will change people’s mindsets in gold.

-Gold or silver-backed currency will send metals through the roof.

Get Chris Vermeulen’s Trades – Click Here

...

more from Tech. Traders

Lee's Free Thinking

These Charts Show COVID 19 Is Spreading in the US and Will Kill the Economy

 

These Charts Show COVID 19 Is Spreading in the US and Will Kill the Economy

Courtesy of  

The COVID 19 pandemic is, predictably, worsening again in much of the US. Only the Northeast, and to a lesser extent some Midwestern states, have been consistently improving. And that trend could also reverse as those states fully reopen.

The problem in the US seems to be widespread public resistance to recommended practices of social distancing and mask wearing. In countries where these practices have been practi...



more from Lee

Digital Currencies

Blockchains can trace foods from farm to plate, but the industry is still behind the curve

 

Blockchains can trace foods from farm to plate, but the industry is still behind the curve

App-etising? LDprod

Courtesy of Michael Rogerson, University of Bath and Glenn Parry, University of Surrey

Food supply chains were vulnerable long before the coronavirus pandemic. Recent scandals have ranged from modern slavery ...



more from Bitcoin

Members' Corner

Coronavirus, 'Plandemic' and the seven traits of conspiratorial thinking

 

Coronavirus, 'Plandemic' and the seven traits of conspiratorial thinking

No matter the details of the plot, conspiracy theories follow common patterns of thought. Ranta Images/iStock/Getty Images Plus

Courtesy of John Cook, George Mason University; Sander van der Linden, University of Cambridge; Stephan Lewandowsky...



more from Our Members

Insider Scoop

Economic Data Scheduled For Friday

Courtesy of Benzinga

  • Data on nonfarm payrolls and unemployment rate for March will be released at 8:30 a.m. ET.
  • US Services Purchasing Managers' Index for March is scheduled for release at 9:45 a.m. ET.
  • The ISM's non-manufacturing index for March will be released at 10:00 a.m. ET.
  • The Baker Hughes North American rig count report for the latest week is scheduled for release at 1:00 p.m. ET.
...

http://www.insidercow.com/ more from Insider

Promotions

Free, Live Webinar on Stocks, Options and Trading Strategies

TODAY's LIVE webinar on stocks, options and trading strategy is open to all!

Feb. 26, 1pm EST

Click HERE to join the PSW weekly webinar at 1 pm EST.

Phil will discuss positions, COVID-19, market volatility -- the selloff -- and more! 

This week, we also have a special presentation from Mike Anton of TradeExchange.com. It's a new service that we're excited to be a part of! 

Mike will show off the TradeExchange's new platform which you can try for free.  

...

more from Promotions

Mapping The Market

How IPOs Are Priced

Via Jean Luc 

Funny but probably true:

...

more from M.T.M.





About Phil:

Philip R. Davis is a founder Phil's Stock World, a stock and options trading site that teaches the art of options trading to newcomers and devises advanced strategies for expert traders...

Learn more About Phil >>


As Seen On:




About Ilene:

Ilene is editor and affiliate program coordinator for PSW. Contact Ilene to learn about our affiliate and content sharing programs.