Market On Open, Thursday 20 June

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Q2 Quarter End Approacheth

by Alex King

More often than you might think, quarter ends see a whole lot of change flow through the market. It’s not a coincidence that major market highs and lows tend to follow quarter ends. The financial crisis in 2008-9? The market rocketed up after Q1 2009 was done, and never looked back. The pre-Covid bull phase? Started right after the end of Q4 2018. Covid crisis in 2020? Q1 was a disaster, Q2 a doozy. Market top in 2021/22? December quarter end was the high water mark.

This could be something to do with phases of the moon, but we think it’s at least as likely that it’s to do with quarterly options expiry - which is tomorrow. You’ve seen us talk a lot about the hedging flows that result from this - you can learn about how to profit from this over at our Jay’s Options channel - just click here. In addition though, it’s often the case that quarter ends mark sector rotation events - from tech to energy or vice versa, from consumer staples to consumer discretionary and vice versa. So when you have a quarter end approaching then it pays to have your wits about you. Always, in my experience, better to react to such changes than to try to guess ahead of time what they might be; but always better to be on high alert at these times.

Now, for our paying subscribers here, let’s get to work. If you’ve yet to join up as paying member and you’re wondering what all the fuss is about? Well, you can use these charts to trade short term and/or invest long term in the instruments covered. If you just want the notes, no interaction, sign up for our Market Insight tier. If you want the whole nine yards with a live, real-money analyst service, it’s Inner Circle.

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Short- And Medium-Term Market Analysis