WEM

WEM is the acronym for Weekly Expected Move, the high and low range for the week set by the options market for any index or security. The WEM is the hedging range that dealers and market makers use to hedge the other side of weekly options trades, expiring at Friday’s close.

Traders should calculate the WEM as of the previous Friday’s close for the week ahead. The probability of the security price staying within the range is 68%. Traders can use the levels as targets for either directional or non-directional trades.

Frequently, the index or security price tags the WEM high or low, then stalls or trades within a few points of the breached level for the remainder of the week. Less often, the security or index reverses at one level and travels to the other.

If the price materially breaches either level, dealers and market makers must hedge in the same direction of the breach, exacerbating the move.

Afternoon Notes – 3/18/2022
A.F. Thornton, BluPrint co-founder and developer of the Navigator Algorithms™, publishes his raw stock market notes each morning and afternoon. The discussions are often biting and sometimes politically incorrect as he challenges Wall Street, Globalist, and Government narratives often weaponized to crush reason and critical thinking. He cuts through establishment media warfare to lead subscribers to opportunities and profits. If you can handle his "thinking out loud" style, Mr. Thornton's notes are always insightful and reflect 35-years as a cynic and successful banker, investor, hedge fund manager, and trader.
Afternoon Notes – 3/24/2022
“A global digital payment system, thoughtfully designed, can enhance the settlement of international transactions while reducing the risk of money laundering and corruption.”
Morning Notes – 3/25/2022
Biden Casually Says Food Shortage "Going To Be Real" As Necessary "Price" Of Anti-Russia Sanctions
Morning Notes – 3/30/2022
Where does the market go from here? The Fed says they will aggressively raise rates into $30+ trillion in debt, including $7 trillion of it to be refinanced in the next 2 years. What happens to the housing market that’s lived off of cheap money since 2009 with the Fed having bought trillions in mortgage backed securities? This fundamental backdrop seems to be disconnected from the recent sharp rally. But at the end of the day, price rules.
Morning Notes – 3/31/2022
For all the fretting about coming tightening and reduction in liquidity the plain fact is there has been none:

WEM

AF Thornton

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WEM

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