Stocks to watch

Please keep in mind This is not investment advice!

Stocks to watch:

Symbol Interesting Price levels Comment
TLT $100 Long term you can’t do anything wrong with this asset.
TMF $7.5
UNG $6 Natural gaz prices are very low at the moment and in face of recession we’re heading new low records.
NTR $52.5
MMM $96
ZIM $12.5 Risk of recession, be careful can go below this level. However it’s interesting long term
DIS $90
VSCO $17.5 Some uncertainties present for sure, however looks very promising long term
AAP $60 AAP is huge disappointment. Surged after dividend cut, but now might find it’s ground around this level. Watch it
KDP $30 Only watching this level for no
KO $59,5
WBA $30
TDOC $22.5
PFE $38
LUMN $1.75 The free fall continues. But if you look out to buy something underpriced for next year?
VZ $35
PYPL $60.5
O $60

Market Setup

The VIX , or volatility index, fall down to a low point of 14. That is very low and very interesting .Low VIX may suggest confidence that is also we see in the tech sector in the last weeks fueled by AI hype. However next week is full of important news and on Friday we have quarterly options expirations alongside with Triple Witching (see below), something that has high potential to reverse the trend in highly overheated tech titles.

Monetary stats

Rates Value (%)
Fed Funds rate (range) 5.0-5.25
EFFR 5.08
Fed Discount Rate 5.25
Prime rate 8.25

Next week Calendar

The upcoming week will be the Triple Witching with the next interest rate decision on wednesday.

Wednesday, June 14

  • Producer Price Index (May)
  • Federal Reserve Interest Rate Decision

Thursday, June 15

  • U.S. Retail Sales (May)
  • Empire State Manufacturing Survey (May)
  • Philadelphia Fed Manufacturing Survey (May)

Friday, June 16

  • Triple Witching
  • University of Michigan Consumer Sentiment Index, Preliminary Reading (June)

Triple Witching

Triple Witching refers to a phenomenon that occurs on the third Friday of certain months when three different types of financial instrument, particularly, stock options, stock index futures, and stock index options expire simultaneously. This convergence of expirations can lead to increased trading activity and volatility in the financial markets.

On Triple Witching days, all three of these financial instruments reach their expiration date at the same time, causing a convergence of trading activities and potentially influencing market behavior. Traders and investors who hold expiring contracts face decisions on whether to exercise their options or let them expire worthless. This can lead to increased trading volumes, as market participants adjust their positions before expiration.

Triple Witching can have a notable impact on market volatility as traders rush to close or adjust their positions, leading to increased price swings. The phenomenon is closely watched by market participants, particularly those who actively trade options or utilize derivative strategies. It’s worth noting that the impact of Triple Witching has diminished somewhat in recent years due to changes in trading practices and the rise of electronic trading.