There’s always some piece of stock market history available to make investors nervous.
And so in an afternoon email on Wednesday, NYSE floor governor Rich Barry shared a little piece of market history exchange legend Art Cashin of UBS notes is getting passed around this week.
Traders note that this Friday, October 16th is an Expiration Day. Traders with long memories recall that 28 years ago, October 16th fell on a Friday and it, too, was an Expiration Day. That October 16th was notable for two things. First, the Dow fell 108 points that day and that was the largest one day point drop in this history of the Dow index. The other thing of note was that it was the prelude to Monday the 19th, when the Dow fell 508 points or 22%, the greatest one day percent drop in the Dow – before or since. Do traders really expect a nasty scare before Halloween? Not really, but we thought you might want to know what they are chatting about at the Wall Street watering holes.
Just something to keep in mind.