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Option Expiration Creates Volatile Stock Trading Session

Discussion in 'Forex Daily News & Outlook' started by futuretrends24, Feb 19, 2010.

  1. futuretrends24

    futuretrends24 New Member

    Apr 30, 2009
    Likes Received:
    Today’s sample of Futures Analysis from FuturesHound.com

    U.S. stock indices traded sharply higher after recovering all of Thursday’s after hours break following the discount rate hike by the Federal Reserve. Equity traders shrugged off Thursday’s action by the Fed after realizing the hike in the discount rate was not a tightening of the Fed’s monetary policy.

    Late in the trading session, buyers disappeared and the equity markets turned negative for the day. Option expiration jitters created a choppy two-sided trade. All three indices ended up trading flat to lower. A weaker Dollar next week could fuel another leg up in the indices.

    March Treasury Bonds and Notes closed higher on Friday. Oversold conditions were most likely the major reason for the rally. In addition, bond traders seemed to be in agreement with the Fed that the discount rate hike was not a sign that the monetary policy is tightening.

    Read full article at full article at FuturesHound.com as well as Futures Analysis, Futures Education and exclusive timely market Gann Analysis

    Disclaimer: Trading on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore should not invest money that you cannot afford to lose.

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