Stock Market- The Option Professor’s Tuesday’s Quick Alert Said It All…Now You Should Read It!
August 26 2022 Option Professor Opinions & Observations
IMPORTANT! Are YOU NEW to options-markets-READ THIS! EXPERIENCED-not happy-READ THIS!
Being summertime and what is occurring is what we have told investors about all year long; we will be as Jay Powell said brief and to the point. The inflation rate must decline as far as the Fed mandate is truly concerned( do you really think we can sustain an economy with prices on homes, gas, food, jobs going nuts ad infinitum?). DON”T FIGHT THE FED…so this week when we went toward the 200 day moving average AND hawkish Powell was a slam dunk…we reminded investors that the first attempt to break it FAILS and we have retrace OVER 250 SPX points off the highs in 3 DAYS! The Treasury rates are JUMPING and the FED as usual is playing catch up to market rates. BULLS say this is a dip to be bought as inflation will tank and jobs will be lost and the Fed will slow to a snails pace after September. Hey…anything can happen BUT as you go around and see prices up everywhere…who’s gonna cut unless forced to? It used to be lower for longer when the Fed was easing…so since they’re draining the balance sheet and halting the money supply is it so hard to understand it will be higher for longer & Jobs lost-possible profits hit?? We told you Tues that the VALUATIONS had jumped to about 19X on SPX and 27X on Nasdaq of 15 & 21. NOW you have higher rates potentially hitting P/E’s and a demand hit desired by the Fed hitting Earnings! RIGHT NOW! A trade range may develop (4350-3950) until Sept 21-if the Fed sez pace to slow-stocks ok. HOWEVER! If we get EARNINGS cut in Sept AND we test take out 3.50% on 10 yr Treasuries-more “pain”!
We are looking where the opportunities may be in energy (shortages) food (drought) & China (stimulus)
You should contact us an get our PDF Reports so you can LEARN about hedging & market direction views
Go to optionprofessor.com… submit email & phone….Get PDF Reports & REVIEW Markets YOU are at RISK
The Option Professor-Graduate Boston College-Trained at The Options Institute and 35+ yrs Knowledge
We Can Help! NEW to the Markets/options or EXPERIENCED & want a FRESH LOOK from Informed Source
Give Us A Try! You’re Going To Like the Way it Works!
All the Best!
The Option Professor
REMEMBER All investing involve the risk of loss and it is not right for all investors. CONSULT YOUR BROKEAGE FIRM/broker to determine your own risk tolerance and suitability. Past performance is not indicative of future results. Information & opinions provided for informational purposes It is NOT advice.
