Friday was the Quadruple Witching day for banks. The word came from the dictionary of ‘haunted language’ invented by the investors. Quadruple Witching is a day when the shares prices become sky-rocketing and the trades rises to a much higher volume. This year, quadruple witching happened twice previously in March then in June and now this Friday in September. In March, the Standard & Poor 500 index closed at slightly high index. In June, it rose to an even higher index while today it touched the highest index volume.
History has seen several big moves in the financial sectors after the quadruple witching day, for instance, last March it brought as much as seven percent gain in the share price while in June it came along with a three percent loss in the share prices. In simple words Quadruple Witching takes market uncertainty to an extra-ordinary high level.
This Friday the investors witnessed a quadruple witching as the index price lowered by 3.2%. Many commodities like crude oil, silver, and copper were traded slowly. The price for US dollar also increased, whereas share prices of some companies were also varied. Apple got upgraded from a Neutral position to Outperform while KB Homes were raised from Neutral to Overweight. Canadian Pacific was downgraded from Buy to Hold while Procter & Gamble was upgraded from Hold to Buy.
The uncertainty in the market which is brought by Quadruple Witching is normally not as frightening as the name means.
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