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Quadruple witching aids volatility - Convergex's Nick Colas

Friday, December 18, 2015 - 03:29

Quadruple witching has increased volatility in the markets as investors digest a news filled week says Nick Colas, Chief Market Strategist at Convergex.

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Yes stocks are being way down by the oil supply glut and quadruple witching Friday. Let's discuss this and more with nick colas chief market strategist at our checks thanks so much for joining academy. So let's move in the market or today isn't really why Hillary isn't quadruple witching Friday are companies. But the. What's troubling oil has been very volatile but it's actually getting a good bit of an uptick today so we're seeing most of volatility come from. Quadruple witching as a kind of sort through today and work towards what I hope will be orderly close. So what this and it cost rally I haven't seen so far this month it it on pause. Actor today you or. We'll be nonexistent this summer we're still. Can you do get a lift into the very end of the year but clearly the Federal Reserve decision and the uncertainty around that. And then this quadruple witching period have put a lot of volatility into this market. And then you lay Iran you know shortly about oil prices and then later on this from me on the corporate bond market particularly high yield. And it's been a much more volatile news filled week that we typically get this time of year and that's what citizens behof. Pause let's talk oil that we'll top corporate. Do you see it turn around and all parts at any time standard do you expect the Florida beat roller he always seems very much like oil has a little bit further votes the downside most of the experts that we speak to. Tell us that there's still way too much supply for the amount of stories that we have here in the US because of the warm winter because of all the supplies still coming here. And that's creating the pressures of the downside would assume that lifting. Until January or February of next year because obviously the near term weather forecast for the northeast are still quite warm so. Well still has a ways to go there. Let's talk about high yield bonds on our air that contagion to Bankrate and yet it's a great point. We originally were worried as the market about high yield because of the energy sector. That's kind of take anniversary is tall and high yield but now which the contagion leading to spread to investment grade bonds. That's really significant because investor great sponsor how a lot of companies fund or stock buybacks that's been up big headline for the year and of being. Push for stocks to go higher if we begin to see some contagion and high grade. Then maybe stock buybacks get put on the back burner we have a whole different market and a for next year. Speaking of next year what is your market outlook for 2006 holes but we're still fairly positive about stocks from 2200. Price target in the S&P. Some modest upside from here we do think it's going to be a much more volatile year particularly in the first half. Because of all these factors that we're talking about they're not going away just as the calendar turns to the kind of volatility that we're seeing for the past month I think when received for the first half of next year's well. Still some good returns there's going to be much. Hard to come by and require a lot more patience. Even with more clarity from the Fed. And terms of what they're neck that for maybe Q1 of next year or cancer really it's a point to some contention with the market. The Fed was pretty clear your right particularly in that famous dot plot to publish along with their rate decision. Four rate increases next year however the Fed Funds futures markets indicating more like two. And so we'll see which one is right fitness futures had a much clearer call on the Fed policy even clear in the Fed itself. So could be that we just get to it in the market would like to a lot better than four. Leave it there thank you so nice you have a nick colas chief market strategist at Comverge next. I'm sure to app Brantley this is directors.

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Quadruple witching aids volatility - Convergex's Nick Colas

Friday, December 18, 2015 - 03:29