Why the last minute push? None of the guys in the mail room seemed to know so I raced upstairs right into the office of our CGO (Chief Guessing Officer). He stood by the window, his vacant stare fixed on some distant point across the harbor. As the afternoon shadows darkened the lines in his deeply creased brow, he seemed somehow less confident than I remembered him... shoulders slightly slouched, weary somehow. Less a financial wizard and more a man as bewildered by his own reflection as by the betrayal of his precious shattered trading zone.
"What's up Chief?" I quipped, hoping to lighten the mood. He remained silent, draining the last few drops of '37 Glenfiddich from the glass he held in his weathered hand. He mumbled something under his breath about "Triple Witching and how they could all go to....". Then the glass just slipped from his hand and bounced off the hardwood floor once, twice, and then shattered at his feet. I backed quietly out of his office. Real respectful you know. I even made sure the door closed without a sound. After all, once a man loses his zone, there's not much left...
Triple Witching - What is it and why should you care?
There can be a sense of unbridled chaos in the markets as traders in the expiring contracts scramble to close out their positions and in doing so, inevitably push the market either up, or down, and often - both. Typically the majority of the scramble is seen in the final hour of trading on Friday. If today's late action is any indication of what's to come tomorrow, this could be one of the most volatile Freaky Friday's we've seen in quite some time.
Historically, the week following September's Triple Witching has a high probability percentage of being a down week. Wherever we close tomorrow, the money to be made over the next few days looks to be had on the south side of the street.
Blessings & Good Trading!
Disclosure: We trade from Zone to Zone / Long or Short / If the river's flowing, we've got a boat in the water.