May 23, 2022
Good morning,
Last Friday was a monthly expiration day for the derivative world, and its common practice to discount the implications a volatile expiration day might portend. That said, equities are starting the week in a positive mood this morning, perhaps to some extent as a follow-through to Friday’s impressive late session recovery rally. It seems that White House comments around reviewing China tariffs recently imposed may be part of this morning’s better mood as well.
I do not have much to add to the broader market narrative that I wrote last week. There is a lot of data coming this week and staffing levels on trading desks may be lower than normal ahead of the long weekend. More highly volatile trading days this week should surprise no one.
Be well,
Mike