Busy Week Ahead as Volatility Gauges Flash Red
With CPI data being released on Wednesday and the Biden administration starting talks with Congress on Tuesday, it looks like this could be a big week for volatility. Looking at volatility gauges, it appears that traders are pricing in that potential as well. (DE, SMG, RIO, GEO, NFLX, AMD, FUBO, USB).
The Dangers of Heavy Volatility and a Narrow Range
-range that defines everything -if not for Tech we'd be.. -vix crushed but SKEW it -when the range breaks we get nasty Get your trade on - This week's Profits and Losses -opened Catapults in META vs /ES short puts -big tech shorts! META, NVDA, MSFT -short puts and feeling the fear! SPX Expected Move--…
Vote of No Confidence Following FOMC as Banks Back in Spotlight
Despite Chairman Powell attesting to the strength of the banking system, regional banks were back in the spotlight as the sell-off resumed following yesterday's close. The bearish tenor from yesterday extended in today's trading session as bearish options activity continued to escalate. Is the move over and is the market beginning to price in a…
Rate Hikes and Vol Spikes, Your Post FOMC Update!
The FED has spoken and the marketplace is hanging on by a thread as we approach the 4106 handle. Join Don in tonight's video as he discusses the volatility that may be lingering just around the corner...
Financials (XLF) and Fed Funds Rate Fun: Your Guide to Volatility in the Week Ahead
This week is already volatile with an equity sell-off and renewed concerns of regional bank solvency; though the XLF broader financial sector fell over 2% today, we saw sharper selling in the regional banks as seen in KRE (down over 6%) on the same day Oil /CL slid over 5% taking the energy sector XLE…
Manic Managers Show Our Troubles Ain't Over
In today's video we discuss the Institute of Supply Management manufacturing and pricing data. We discuss the continued compression in manufacturing for nearly 16 months while prices move higher again. We looked at bearish positions in Industrials, specifically Boeing (BA).
Market Volatility Expands Before FOMC Meeting
-Range Bound? /ES levels to watch -Realized volatility expanding -FRC is down and out, who's next? -SKEW is a rockin' -FED, Jobs, ECB Get your trade on - This week's Profits and Losses -covered /ES calls -opened in/out BABA spread -opened Catapults in TSLA & QQQ vs /ES short calls SPX Expected Move- -last week…
GDP Slowdown Signals Rate Cuts?
In today's video we discussed Advanced Gross Domestic Product. The decline in GDP as a sign of economic slowdown and forecasting a potential recession. We also reviewed the CME Fed Watch Tool pricing in rate cuts as early as July.
A Destabilizing Dynamic Forms in Markets
Big tech continues to save the market from the abyss. Big tech is the only major sector up YTD and it's being driven by MSFT, AAPL, TSLA, NVDA, GOOGL, AMZN, and META which account for 90% of the S&P YTD to gains. For the week the SPX is already at the lower edge of the…
Surprise Beats and Earnings Extravaganza - with More to Come!
We saw a sell-off in stocks in our "Reward Pathway" Play today with many stocks taking a larger hit, but we ended the trading day with surprise earnings beats from tech-titans Microsoft (MSFT) and Alphabet (GOOGL). In tonight's Theo Video Update, we put all the pieces together and continue planning the week ahead which has…