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(Justin Vaughn, Editor, Options Trading Report) The S&P 500 just finished its worst three week loss cycle since March 2023, with the Nasdaq Composite and Dow Jones Industrial Average following lower. High techs (and high flyers) led the losers, as the sell-off spared no sectors. For the year the Nasdaq Composite and the S&P 500 have surged ahead 27% and 13% respectively, while in September both have fallen 5.4% and 3.8%, stunning numbers and hopefully … Read more…

(Justin Vaughn, Editor, Options Trading Report) Last week finished on a ‘sour note,’ as the high techs lost steam on Friday, jolting the indexes lower. The Dow Jones Industrial Average lost 289 points while the S&P 500 and Nasdaq Composite declined slightly, 1.2% and 1.6% respectively; (for the week the Dow Jones was positive). As the market opened Monday, the bond market swept stocks aside, as Treasuries were ‘supreme,’ hitting a 16 year high, attracting … Read more…

(Justin Vaughn, Editor, Options Trading Report) The Giants Dragged The Market Lower…Last week both Nvidia and Apple suffered heavily. After Nvidia’s skyrocketing performance upon extremely good earnings for the quarter, the stock dropped 6% in two sessions as profit taking took a toll. Apple fell over 6% in two sessions after a dethroning, as China’s government mandated central government’ officials stop using the iPhone, with more levels of government to be curtailed in the future. … Read more…

(Justin Vaughn, Editor, Options Trading Report) “Higher oil prices, higher inflation, higher rates for longer. That’s the tightrope that we’re walking right now,” spoken by Ole Hansen, head of commodity strategy at Saxo Bank. The U.S. investor is facing a multitude of negative ‘darts,’ trying to dissect what to invest in, in this troublesome market environment. Oil continues to notch higher, finishing at $86.50 on Tuesday and near $90.00 on Wednesday, up consistently for 9 … Read more…

(Justin Vaughn, Editor, Options Trading Report) “Proceed Carefully”…..words of caution, spoken by Jerome Powell, Federal Reserve Chair, at the ‘hallowed’ meeting of the Federal Reserve presidents from sectors in the United States, in Jackson Hole, Wyoming. Referring to the path of increases, Mr. Powell chose his words carefully, leaving the rate hike topic on ‘the table,’ but ready, giving the market little solace. It is a ‘strong-bet’ that inflation has throttled back. Mr. Powell will … Read more…

(Justin Vaughn, Editor, Options Trading Report) After three weeks of mixed to negative markets, Monday began and ended on a somewhat positive note, led by the ever aggressive tech-minded Nasdaq Composite, up 206 points. The 10-year Treasury stayed strong, reaching 4.34%, up from Friday’s close of 4.25%. As investors and traders look for higher yields, shunning stocks, markets struggle to stay above water. The University of Michigan Consumer Sentiment Survey, also Friday, is expected to … Read more…

(Justin Vaughn, Editor, Options Trading Report) The earnings parade continues this week as some leading retailers headline quarterly results. Home Depot, Target, TJX and Walmart will be reporting, giving investors and traders a pulse of the coming market. Also due up is the July retail sales report, coming Tuesday morning. Wednesday afternoon the Fed will release its minutes from the July meeting. A strong advance by the tech sector nudged the market higher Monday. Bond … Read more…

(Justin Vaughn, Editor, Options Trading Report) As the earnings season winds down, with 79% of reporting companies besting expectations, investors and traders have been extremely critical this quarter. And resulting markets have reacted ‘stubbornly’ barely showing any upwind movement. Companies, according to FactSet, have seen their stock regress, dropping 0.5% “during the two days before and after the released reports. Surprisingly, over the past five years, the average change for a companies’ stock over this … Read more…

(Justin Vaughn, Editor, Options Trading Report) Monday kicked off another upcoming earning-packet week, catching ‘its breath’ as companies are getting ready to unload quarterly reports. If reporting follows the pattern of previous weeks, and according to market ‘gurus,’ expectations are for better numbers overall. As the month ended (July 31) the Dow Jones Industrial Average soared…up 1,069.79 points, or up 3.1%, the biggest two month increase since 2022, November, according to Dow Jones Data. The … Read more…

(Justin Vaughn, Editor, Options Trading Report) The University of Michigan released its ‘Consumer Sentiment Index numbers for July, showing the highest levels since September 2021, on Monday, boosting investors and traders’ confidences. July’s 72.6 number bested the forecast of 65.5 by market gurus. The U.S. consumers are catching up to previous pre-pandemic levels, projecting little concern over rising retail prices. Car buying, new and used, travel of all sorts, major household items and dining out … Read more…