No matter how the market is trending, if traders want to see big moves, the stock they’re trading needs a catalyst.
Not all of these events are going to make a splash. But when they do, the results can be downright explosive…
And I don’t intend on going backward in 2022.
That’s why here at New Money Crew, we want to highlight the anticipated expiration week market catalysts hitting the headlines in the days ahead…
Washington’s Expiration Week Market Catalyst Info Dump
This expiration week, traders are going to get loads of potential market catalysts in the form of an information dump coming from Uncle Sam with the Federal Reserve and other bureaus reporting.
First up, we have the Federal Open Market Committee meeting starting Tuesday and reporting Wednesday.
If the FOMC freaks out and hikes rates earlier than expected, I expect some selling…
But ultimately, the bond market has at least two rate hikes priced in already… So that downward pressure would likely be short term — or like our good friend J-Pow would say, it’s transitory!
On Wednesday, we’ll get another expiration market catalyst with November’s retail sales numbers from the Census Bureau. That should give us a look under the hood at holiday demand.
Estimates expect sales to be higher than October’s strong report. But the question everyone wants to know is if October’s surprise was a result of consumers trying to stay ahead of the logistics bottleneck that’s looming over the shopping season or not.
Speaking of logistics, we have a light slate of earnings events this week, but I’ll have my eyes on FedEx Corp. (NYSE: FDX) reporting after the bell on Thursday. The company could see a nice tailwind with a positive retail sales report and some strong forward guidance.
Their rivals over at United Parcel Service Inc. (NYSE: UPS) saw a nice 7% pop after beating earnings back in October. The two roughly trade together, but UPS has been the stronger performer on the earnings call so far this year.
The final market catalyst traders should need to be aware of is expiration week for December monthly options along with index options and futures, known as “quad witching.” Weeks like this tend to see increases in volume and volatility as we get closer to Friday. So stay nimble, use proper risk management and trade small.
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