Ghosts of 2008 Return to Markets?
-- One Bad Bank?? SIVB -- regional banks PNC, CBNK, CUBI, MCB, PACW, SBNY -- immediate resolution or panic at the disco? -- Russell crushed, Bonds explode, and Vol inverts -- Oh my CPI ! Get your trade on-- This week's Profits and Losses -- Catapults- bearish spreads hitting their stride ! -- in/out spread…
Are Financials the Canary in the Coal Mine?
In yesterday's video I said if the market was going to make another leg lower it would happen on the back of financials. Financials delivered that leg lower today as the market screamed systematic risk. The financial sector is on the verge of going to the 2020 crash levels just as inflation continues to rage…
Risk Builds as Markets Become Completely Data Dependent!
It seems like the year for the stock market hinges on the next 9 trading days. The theme of the last 2 days of Fed Chair Powell testimony is "data depended" and there's no shortage of crucial data over the next week. The market could go extreme in either direction based on any one of…
As the Odds of a 25bps Rate Hike Fall, so Falls the Market: Your Sell-side Update
Chair Powell spoke this morning and his statement suggested the Fed is willing to be more aggressive to keep inflation in check, and his statement sent bearish shockwaves through the equity market. In tonight's video, we pinpoint where the sell-side activity was most aggressive, how bonds and oil fared, and what sector we're closely watching…
Powell Prep Takes the Charge out of the Bulls?
In today's video we looked at historic rate hikes and Zero Interest Rate Policy (ZIRP) and the impact on equities. We looked at the more direct impact on companies that depend on borrowing either for costumers to buy the product or for company growth. We addressed the inverse correlation between interest rates and home builders…
Why is 0DTE Changing the Face of Markets?
-3931 made an appearance! -bonds recovered and dollar faded -JPOW, Fed Funds, Jobs # -0DTE continues to move markets -Daily Expected Moves Get your trade on-- This week's Profits and Losses -covered short calls and puts SPY, QQQ, /ES, and /MES -Catapults short puts closed, it's a free ride from here ! -in/out spread MS…
Tesla Gaps Lower After Presentation...What's the Master Plan for TSLA & Market?
Investors didn't seem to appreciate the details of Tesla's "Master Plan 3" as the stock traded down as much as 8% following the open. Tesla appears to suffer from the same issues plaguing equity investors as the details of any sort of plan are short on specifics. Rising rates have pressured bonds and stocks as…
Will Inflationary Fears Overwhelm Markets?
The bond market is reaching a precarious situation as the 10 year yield hits the critical 4% level. Any further selling in bonds has the potential to take down tech stocks sending the overall market lower. So far this week the market has been quiet, but a quiet market looking for a catalyst to explode…
Last Day of February brings Trading Opportunities for March: Sorting the Strongest Stocks from the Weakest
February ended on a volatile sell-off as we get ready to trade into March. In tonight's video, we scan the market to find the strongest stocks - biggest gainers - in 2023 so far and then separate those from the weakest stocks. There's a clear pattern emerging - can you see it? Find out in…
Durable Goods Orders Forcing Economy Into the Slow Lane?
In today's video, we broke down durable goods vs. core durable goods we discussed the miss in durable goods being attributed to aircraft and the miss not being a strong indication of an economic slowdown. We looked at the U.S. dollar's purchasing power and future rate hikes as the catalyst to drive a more significant…