WILD CLOSE WITH QUADRUPLE WITCHING?
Both the Dow and S&P traded near break-even with investors keen on remaining nimble during the last hours of quadruple witching.
Quadruple-witching occurs on the 3rd Friday of every quarter when index futures, index options, stock options and stock futures expire on the same day.
How should you be positioned?
Instant Insights with the Fast Money traders
Friday is supposed to be a crazy day, counsels Jared Levy of Peak 6. But quadruple witching is probably much ado about nothing.
However, if you look at big strikes like 900 or 950 in the S&P – those numbers tend to be a magnet, adds Brian Stutland of Stutland Equities. When you see an expiration roll off you start to see some movement.
It seems to me the market is rolling over because traders want to go home for the week-end, adds Patty Edwards of Storehouse Partners with a chuckle.
The important point is that the March rally is still in tact and that means err on the bullish side, adds Bill Strazzulo of Bell Curve. I expect we break out to the upside.
I disagree, counters Jared Levy. We’ve continued to fail as the stock market tried to move higher. And with a Fed meeting on the horizon I’m cautious.
Tech investors spent Friday sorting through a mixed bag. RIMM traded lower after the firm offered weaker-than-expected guidance, however rival Apple traded modestly higher with the new iPhone 3G S making its debut in stores on Friday. Meanwhile tech investors are also keeping a close eye on Palm which reports earnings next week.
What’s the tech trade?
I’d be really careful in all these names, counsels Jared Levy. However, I like Palm as a potential buyout candidate and I’d consider a modest bullish position.
Apple is probably overbaked, adds Patty Edwards of Storehouse Partners. And I want to see if Steve Jobs comes back. If he doesn’t I think the stock probably has downside.
I’d stay with the tech sector in general, counters Bill Strazzulo. I think this is one of the sectors that pushes the broad market higher.
It seems to me that Microsoft , IBM , Amazon, and Google are all putting cash to work in R&D, muses Brian Stutland. That, in turn, should push these stocks higher.
CHART OF THE DAY: BIOTECH BREAKOUT
Bill Strazzullo has his eye on the Biotech HLDRs. With the ETF holding above $92.50, a key technical level, he thinks it may be poised to break out.
I think it could go to $98, Strazzullo says.
I’d play the BBH with the July 95-100 put spread, adds Jared Levy.
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Trader disclosure: On June 19th, 2009, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders;
Stutland's Firms Is Short options premium in SPX (S&P 500 options)
Edwards Owns (SH)
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