Fed Reaction and Global Economy

Last Week's Income Report: May 9th, 2022

ZIM Integrated Shipping Services (ZIM)

Fed Reaction and Global Economy

The Fed did what was expected and raised interest rates by 0.50% and said they’d continue to monitor the situation.  They kept the language neutral, which the market liked and had a one-day rally.  

Europe came out and said they are expecting slow downs in future growth as higher prices from inflation will be a barrier for the foreseeable future.  China continues to lock down cities as it’s fighting off new COVID infections.  As a result of a possibility of a European recession and supply chain issues from China, the market sold off the rest of week and continued its fifth week in a row of the SP500 falling.  That’s the first time that has happened in more than a decade.

We closed one winner in Options Income Blueprint last week, on ZIM Integrated Shipping Services (ZIM). This was our first time trading the Israeli international cargo shipping company.

We entered the position back on April 19, selling a May monthly put to generate a big slug of cash. On Tuesday, the stock spiked more than 8% and I recommend members book profits. This is not the kind of market where it pays to be greedy (if it ever does). And we walked away with a 1.8% return in 15 days, or 44% on an annualized basis.

I will be keeping an eye on this shipping play for another opportunity to sell a put and generate more cash.

In the latest Options Income Weekly, I discuss the market’s reaction to the Fed announcement and take a closer look at the ZIM trade.

Can Clean Energy Renew Your Portfolio?

Can Clean Energy Renew Your Portfolio?

johnh
On August 8, 2022

As we look for trade ideas, the U.S. government just handed over a potential big win for one industry. Will we see a boost to the clean energy stocks after the Senate voted to unlock nearly $370 billion this past weekend?

Will Payrolls Push The Fed To Take Action?

Will Payrolls Push The Fed To Take Action?

johnh
On August 7, 2022

What does all of this mean for the future? Are the jobs reports good or bad?

Keep reading to find out the key levels for the S&P 500 and what reports are likely to move the markets this week.

Job Market Remains Tight As Jobless Claims Increase

Job Market Remains Tight As Jobless Claims Increase

johnh
On August 4, 2022

To close out the week I have a trade idea for you with a potential 44% return in the next 43 days.

Get Today’s Trade Idea (and more)

FOMO Hits Market After Strong Earnings

FOMO Hits Market After Strong Earnings

johnh
On August 3, 2022

We could see another strong month ahead for tech and there’s one symbol that you may want to add to your trading list.

Keep reading to learn more about the one symbol that could have a strong August.

Consistent Income Using One Ticker

Consistent Income Using One Ticker

johnh
On August 2, 2022

As the markets remain relatively flat, theta decay is your friend this week so I thought I’d write about a trade that has been showing remarkable accuracy lately.

This one trade has a 90% accuracy rate. Keep reading to find out more.

How Stable Is The Job Market?

How Stable Is The Job Market?

johnh
On August 1, 2022

It wasn’t too long ago that the market was reacting (or overreacting) to every piece of news that was published. Over the last month and a half, the markets have settled down some. That can be seen from the VIX (volatility index) which has been steadily decreasing since the mid-June market lows.

Don’t Call It A Recession

Don’t Call It A Recession

johnh
On July 31, 2022

That begs the question: if the market is forward-looking, why do we put so much attention to GDP numbers that are identified and then reported after the quarter is complete?

Is This Really A Recession?

Is This Really A Recession?

johnh
On July 28, 2022

The Mediots Are At It Again

As we’ve explained over the last few months, it was likely that the U.S. economy would meet the ‘technical’ definition of a recession (two or more consecutive quarters of negative GDP).

Three Dividend Stocks To Buy After Yesterday’s Fed Meeting

Three Dividend Stocks To Buy After Yesterday’s Fed Meeting

johnh
On July 27, 2022

It’s official, the Fed increased interest rates by 75 basis points for a second straight meeting. Inflation remains high, job growth is slowing, and consumer confidence is at historic lows.

Maybe that’s why investors are rushing toward dividend investing to protect their portfolios. With a recession likely on the horizon, if we’re not there already, and dividend payouts projected to increase throughout 2022, there are three quality companies you should consider for your portfolio.

Top CEOs Are Saying This About The Upcoming Quarter

Top CEOs Are Saying This About The Upcoming Quarter

johnh
On July 26, 2022

What can learn from the major companies that reported earnings?

Alphabet (GOOG/L) released earnings and missed overall, but their ad revenue beat expectations so their stock went up after hours. Microsoft (MSFT) missed on cloud revenue and ad revenue and their stock went down. Great.

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