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Beware The Week After June's Options Expiration

Historically the week following June's triple witching options expiration has been "horrendous" according to StockTradersAlmanac.

In fact, in post-election years since 1953, June still ranks poorly and its average loss for DJIA and S&P 500 increases to –1.2% and –0.7% respectively compared to –0.3% and –0.01% in all years. DJIA in particular struggles, advancing in just three post-election year Junes (1977, 1985 and 1997). NASDAQ and Russell 2000 fare best in June, posting modest average gains.

Throw into the mix the concern that the Fed will be discussing possible avenues to ease off of the QE gas pedal at their June and July meetings and you have more reason to possibly see weakness as the Summer doldrums begin. 

The Monday of Triple-Witching Week the Dow has been down ten of the last sixteen years. Triple-Witching Friday is better, up seven of the last ten years, but mixed over the past 20 years, up eleven, down nine with an average loss of 0.3%. Full-week performance is choppy as well, littered with greater than 1% moves in both directions. Weeks After Triple-Witching Day are horrendous. This week has experienced Dow losses in 21 of the last 23 years with average losses of 1.2%.

I say we all take partials, move up our stops and head off to the Hamptons with Bunny........because at the very least, volumes will begin to dry up and markets will become a total (sideways) bore.  idk about you but I'd much rather be on a jet ski.  What say you?

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