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Strategies & Market Trends : Ask DrBob -- Ignore unavailable to you. Want to Upgrade?

To: 1podstock who wrote (41541)	7/27/2001 7:34:17 PM
From: CookiePuss	Respond to of 100058

That's true. I also wonder what kind of window dressing would occur in tech issues given most are trading lower than where they started out in the month. Maybe reverse window dressing next week? Lol.

To: 1podstock who wrote (41541)	7/29/2001 5:37:04 PM
From: Louis V. Lambrecht	Respond to of 100058

podstock - we always use the terms "windows dressing" on this thread as many things happen at the end of the month. As you point it out, volatility due to windows dressing is stronger at the quarter end. (It also is stronger again by half year end). But this is the finds windows dressing. Problem with the funds, is that most have Nov 30 as year end. So, their windows dressing should happen the month before calendar quarter. End of month also have: - rollover of options. Most hedgers will swap to another time series of options (long before expiration date, while there still is some premium). This can happen from the last Friday of a month to the first Friday of the ext month. I haven't analyzed the data yet, but I presume that all hedgers will not rollover the same day. So, WTH. - expiry of currency options (always last Friday of the month). Nothing to do with equities markets? No so sure IMHO. Any movement of capital has an impact on all markets. - trading rooms and boiling room: raders can be inclinded to close their positions on end of month in order to book the profits. (On which they are commissionned).