The market is set to open relatively flat this morning and is expected to move lower due to a lot of choppiness today, since its Quadruple Witching.
Quadruple Witching is the third Friday of every March, June, September (this one), and December – and its when market index futures, index options, stock options, and stock futures expire.
What generally happens on these days is a lot of jostling around by the biggest funds, as everyone is trying to push their stock or index in their favor in accordance with their options and futures positions.
We don’t have to be too concerned with it all, but just know that today is generally very choppy. Up moves get pushed back down and down moves get pushed back up.
Unity (U) – A IPO to look forward to
Unity has created a platform for creating an operating interactive real-time 3D content. They are also a very unique IPO as they’ve created their own software for Bankers to enter limited orders for their IPO as well as be involved in the pricing. It kind of functions like a modified Dutch auction. Their lead underwriter is Goldman Sachs so that’s always a positive. They’ve shown nice continual Revenue growth and have high profile existing shareholders including Sequoia capital. perhaps more impressive, they have over 1.5 million monthly active creators whose applications were downloaded over three billion times per month in 2019. Finally, they’ve demonstrated a strong demand through their unique IPO procedure ultimately bring the full-sized 25 million shares to Market at $52 a share which is $4 above its price range of $44 to $48 which was raised from $34 to $42. Needless to say I want in but I won’t overpay. at this point there’s a lot of hype and this company will need to demonstrate continual price strength to get me in. If not, I”ll let the price Settle and get in on a new high.