Market Braces for Triple Witching

A growing conviction that the nation’s economy and corporate profits are gathering strength will take on a life of its own this week, perhaps pushing stocks up as investors worry they’ll miss out on the rally.

With no blockbuster earnings reports expected and with economic data expected to show consumer spending improving, Wall Street’s optimism may persuade more investors to ready their portfolios for a rebound.

Tensions are running high, analysts warn, as investors remember a string of false rallies over the last two years. Concern that stock prices are getting stretched and worry over unforeseen events will keep a lid on gains.

“Let’s remember: We are one headline on the tape away from having the market be in a bad way again.” said Charles White, president of Avatar Associates. “That probably will keep the euphoria in the market down a bit.”

This week’s triple witching--the simultaneous expiration of futures, options contracts and index contracts--will make for a seesaw market, but stocks should end the week higher.

On Wednesday, the Commerce Department will release retail sales for February, which are expected to rise 0.9%, reversing a dip of 0.2% in January.

Thursday, the government will report January figures on business inventories, and on Friday the government is slated to release producer prices--prices charged at the factory door and farm gate.