Another “Sucker’s” Rally?
The Consumer Price Index came in at 3 year-over-year, which was less than expected. Core inflation also came in under the forecast. Interest rates dropped sharply and stocks rallied at the idea that the Fed will once again talk about cooling rate hikes. The S&P 500 is hitting fresh 52-week highs (let that sink in for a moment), and the Russell 2000 keeps gaining 1% per day. Everything is great, right? What could go wrong?
Market Anticipates Fed’s Response to Inflation as CPI Report Looms, Eyes on S&P 500 Reaching 4500
July 12th, 2023 Market Anticipates Fed’s Response to Inflation as CPI Report Looms, Eyes on S&P 500 Reaching 4500 By the time this gets published, the Consumer Price Index report will have been released and we’ll know how the market is going to react to inflationary readings, but I don’t think the market is likely […]
Market Anticipates Fed’s Response to Inflation as CPI Report Looms, Eyes on S&P 500 Reaching 4500
By the time this gets published, the Consumer Price Index report will have been released and we’ll know how the market is going to react to inflationary readings, but I don’t think the market is likely to have that much of a reaction unless the numbers are outside of an expected range. The reason is that the Fed has already hinted at going back to raising interest rates at their next meeting. We’ll likely see another 0.25 basis point increase, therefore the CPI report doesn’t matter as much other than it will make an unknown known.
The Secret Behind Tech Stocks’ Rise: The Yen Carry Trade
July 11th, 2023 The Secret Behind Tech Stocks’ Rise: The Yen Carry Trade Ok, I know that talking about the Japanese Yen isn’t at the top of credit option traders’ minds, but I’ll keep it brief and tell you why I think the Yen Carry Trade concept will ultimately lead to a second half of […]
The Secret Behind Tech Stocks’ Rise: The Yen Carry Trade
Ok, I know that talking about the Japanese Yen isn’t at the top of credit option traders’ minds, but I’ll keep it brief and tell you why I think the Yen Carry Trade concept will ultimately lead to a second half of trading that pushes the tech sector higher.
How we maximized gains with this credit spread on DRI
July 10th, 2023 How we maximized gains with this credit spread on DRI In Options Testing Lab we recently looked at Darden Restaurants (DRI) and tried to find a credit spread that was worth our time. The stock came up on our scanner because it has been trading higher over multiple time frames, including the […]
How we maximized gains with this credit spread on DRI
In Options Testing Lab we recently looked at Darden Restaurants (DRI) and tried to find a credit spread that was worth our time. The stock came up on our scanner because it has been trading higher over multiple time frames, including the last quarter and month at the time of the scan. It then came back into an area of support and started moving higher.
Market Faces Uncertainty as Earnings Season Soon Begins
July 10th, 2023 Market Faces Uncertainty as Earnings Season Soon Begins Welcome to the first full week of trading in the third quarter of 2023. With earnings season around the corner and a spike in volatility last week from strong economic data, the market has been fighting for direction. While the first half of the […]
Market Faces Uncertainty as Earnings Season Soon Begins
Welcome to the first full week of trading in the third quarter of 2023. With earnings season around the corner and a spike in volatility last week from strong economic data, the market has been fighting for direction. While the first half of the year surprised many traders, the forecast hasn’t changed much.
Economic Conditions Will Push The Fed To Raise Rates
July 7th, 2023 Economic Conditions Will Push The Fed To Raise Rates The market is once again confused about where it should be headed as manufacturing is showing contraction, but economic data is showing that jobs are better than expected. That all but solidifies future rate hikes as the Fed battles its way to a […]
