Option Professor-Stock Market- Q4-Do We Rally? Start Economic Slowdown? Read On!
October 8 2021 Option Professor Opinions & Observations
Welcome Back Everyone!
Well we had an enjoyable vacation to the Caribbean in the last weeks (Las Terrenas Dominican Republic) but before we left we told readers that unless we closed above SPX 4510 traders should avoid the market which was sage insight. We sent out an alert saying that the market should hold the SPX 4300 area and so far so good. Now we are chopping wood between the highs of SPX 4550 and the lows this week 4280. The good news is earnings are coming out and they may blow out on the upside (this week banks airline transportation companies). The bad news is that inflation also comes out and unless they lie the number may be scary. Higher costs can pinch margins ergo hurt earnings. The debt ceiling is a joke but it continues til December. Infrastructure is dead in the water as is tax hikes as we speak. We live in an obstructive political system now and there is no I in team. Charlie Munger gave the all clear in China hen he doubled his stake in BABA. We got the Atlanta Fed taking almost 50% off the GDP reading down to a 1%+ handle and core inflation is running the hottest in about 30 years! At the end of the day earnings and sales growth are expected to be strong for Q3 and still robust in Q4. The big question is what is the VALUATION for those numbers as inflation and higher interest rates (10yr hit 1.60%) may lower the P/E ratio and there goes dreamers thinking Q4 and the new highs. We are top of things so get the detailed report and ask your questions at [email protected]
Stock Market
The road to SPX 4600-4800 requires a move thru SPX 4450 and 4550 & so far no such move has occurred. If interest rates go higher say sayonara to the high flyers and some tech…if rates roll over sayonara to the cyclical and value trade. Not an easy spot…we have a detailed report so do yourself a favor and get it
Bond Market
We told you that our view is that 1.75% in March was a blow off (like Japan in 2011 & Germany in 2014) and despite this weeks action that high yield remains. TLT has deteriorated lower than we like (under 144) but still above March lows. Should we make new lows (exceed 1.75%) we will change our view otherwise we are looking at a gift this week. Get our detailed report and LEARN how we get INCOME
US Dollar/International Markets
The DXY (Dollar Index) has a ton of resistance around 95 and we told readers to beware of a turn DOWN in the US Dollar if unable to exceed that level. We are printing money and more to come and our debt ceiling explosion is getting big publicity. An economic slowdown may be problematic. The international markets had rallies in their downtrends…..get our detailed report to learn our take on all things intenational
Crude Oil Natural Gas
We were telling readers these markets were running long long ago. Get the detailed report to learn current opinion.
Gold Silver Copper Crypto
We think the precious metals may be on the verge of something big as well as copper. We told readers that the drop in Crypto in July was a gift….get the detailed report and learn what we see now!
Soybeans Sugar Coffee
We told readers LAST YEAR these were bull markets……now they pull back or consolidate. Get our detailed report now!
Remember There is risk in all investing and it is not right for everyone. Consult your brokerage firm/broker to determine your own suitability. Past performance is not indicative of future results. Information an opinions are for informational purposes only. It is NOT advice.
