March and September Trip Witch are the most turbulent of the quarterly Trip Witches. If you look up Major crashes in the U.S. markets, most happened Jan-Mar or Sept-Dec. So big money likes to get ahead of these Options expiries, which you can see in the options expiry weeks of the two months before Sept and March.
During the bull runs, the first month's OpEx week would chop sideways, or a small down. This is a rotation out of some stocks and into others, marked YELLOW.
Next, it would pump until the 2nd month's Opex week, or the week after. This is would be the short squeeze pump, marked RED.
Then it sells off heavy going into the Trip Witch OpEx week, which marked the bottom in GREEN.
However, you'll notice they started behaving differently now that we've entered a bear market. Starting July OpEx seems like a green to me, instead of a yellow. Is Yellow next, or Red? I'll be watching for clues.
During the bull runs, the first month's OpEx week would chop sideways, or a small down. This is a rotation out of some stocks and into others, marked YELLOW.
Next, it would pump until the 2nd month's Opex week, or the week after. This is would be the short squeeze pump, marked RED.
Then it sells off heavy going into the Trip Witch OpEx week, which marked the bottom in GREEN.
However, you'll notice they started behaving differently now that we've entered a bear market. Starting July OpEx seems like a green to me, instead of a yellow. Is Yellow next, or Red? I'll be watching for clues.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.