What if it all works out?
We are only a few days away from U.S. history’s most contentious presentential election. Everyone in the world is watching, including the markets. Between earnings season, the election, and the upcoming Fed meeting, the markets are unable to pick a direction. Coming off a weak couple of days, the market is stuck with an inside trading week, highlighting the indecision. The next two weeks will tell us if the seasonal best couple of months are still ahead or if we’re setting up for a monumental pullback or even crash!
Strategies To Use For Earnings – Part 2
Earlier this week we reviewed the long straddle and the bull put spread for a way to trade during earnings season. The type of strategy you pick depends on the direction you think the underlying will move and what will happen to volatility. But what if you believe the underlying won’t move in either direction? Sometimes the stock stays pretty flat during earnings. There’s a strategy for that as well.
Strategies You Can Use For Earnings Season
I’m not sure about you but I was always told it was a waste of time to trade around earnings. No one can predict how the underlying will move – we’ve all seen stocks beat numbers and trade lower or miss estimates and trade higher. It’s one of the most volatile times to trade, but there are strategies you can use to take advantage of the extra volatility.
The Next Stock Market Crisis Will Be Here Sooner Than You Think
Not long ago, everyone talked about electric vehicles taking over power grids and causing cities to crumble. It was a rallying cry for those against the likes of Tesla. Automotive manufacturers were slow to retool plants and invest in electric vehicle infrastructure and now that they are caught up, the EV movement has lost momentum. However, it’s not EVs that will bring the power grids to a grinding halt. It is, however, something else that is growing in popularity and will soon become a real problem that can’t be ignored.
Investors See Mixed Messages Before Earnings Season
The latest bull run was halted when the Consumer Price Index rose more than expected. While that could be a sign that inflation is returning, investors were also left with weekly unemployment claims that rose to a 14-month high, which was much more than expected. There may be a logical explanation for the jobless claims, but we’ll get to that in a second. The markets are awaiting Q3 earnings, which will be the next driver of prices, but in which direction? That and more ahead.
Stocks Are Prepping For a Breakout!
Investors are undoubtedly dealing with fear, uncertainty, and doubt right now. The situation in the Middle East is getting worse. Russia and Ukraine are still fighting. And now in the U.S. people are starting to question if a 50 basis point cut was too much, too fast, and will lead to inflation. But all of that aside, and I know that’s a lot, I think the market is prepping for a breakout and some of the best trading for the rest of the year still lies ahead!
Market Caution Amid Middle East Tensions: Why Earnings Season May Hold the Key to Stability
The escalation of geopolitical tensions in the Middle East has the market in a bit of a holding pattern. The initial reaction saw a spike in Gold and Oil, but luckily, we haven’t had much followthrough to the downside since then. We will take a look at some charts and why I think the market is largely ignoring the news and still prepping for an upcoming earnings season and when I think volatility will subside.
Can the S&P 500 Break Its September Slump? A Look at the Bullish Rally and What’s Next for the Market
After the Fed announced the first rate cut, the market has been rallying to new all-time highs. And why wouldn’t it? The GDP report was in line with expectations, unemployment claims came under expectations, and Fed Chairman, Jerome Powell, said he is dedicated to keeping the US Treasury market – the deepest and most liquid in the world – functioning at a high level.
The bullishness has pushed the S&P 500 to be on pace to do something it hasn’t done in the last four years. It might close September in the green, but how long can this rally last?
Is Your Portfolio Ready if the Holiday Shipping Crisis Hits?
Christmas is canceled this year so start setting expectations early. Santa and his elves are likely going on strike in the coming weeks right in time for the election and for a busy holiday season. I haven’t lost my mind – I know Santa doesn’t exist, but the looming shipping crisis is around the corner and could have a major impact on some key industries within the broader market. Is your portfolio prepared?
All Eyes On The Fed As Small Caps Could Be Signaling The Next Move Ahead
The market is stuck in a holding pattern until the Fed announces its decision on an immediate rate cut and the plan for future cuts. Investors have been arguing over a 25 or 50-basis point cut and will finally get the answer around 2 pm EST. The broader market indexes traded above resistance levels intraday yesterday but retreated by the close. While waiting for the next catalyst likely to move the market, we will look at small caps to see how willing investors are to dip into the riskier investment pool. Are the small caps signaling the next market move?
