Reflections

(Justin Vaughn, Editor, Options Trading Report) For the third straight week, the market continued ‘sour,’ with investors and traders beleaguered by a plethora of unsettling news. Apprehension gripped the market as stubborn inflation bucked Mr. Powell and the Federal Reserve. The January number [CPI] came in at 6.4%, a bit of a drop from December’s 6.5%, giving little solace to the ‘players.’ The coming release of the PCE, [Personal Consumption Expenditures], on Friday will give … Read more…

(Justin Vaughn, Editor, Options Trading Report) Important Inflation information is coming up for release this week, giving investors and traders more to think about. Evidently there was more positive than negative thoughts as Monday’s close was upward. The Dow Jones Industrial Average was up 1.1%, 376 points, as the S&P 500 nudged higher by 43 points. The technology-heavy Nasdaq Composite was positive 136 points, all giving some reassurance that the ‘news’ will be ‘good news.’ … Read more…

(Justin Vaughn, Editor, Options Trading Report) Stocks opened mixed on Monday as traders and investors were perplexed…as hiring has soared, with 517,000 new jobs reported since the first of the year, shoving unemployment to a 57 year low, at 3.49%. That is the lowest level since May 1969, after five months of slowing employment, according to the Labor Department. Treasury Secretary Janet Yellon had strong remarks for recession doomsayers: “You don’t have a recession with … Read more…

(Justin Vaughn, Editor, Options Trading Report) Investors and traders are finally ‘on board’ with Mr. Powell, Federal Reserve Chair. After rate hikes from June of 2022 to the present, and ranging from 0.75 percentage points to today’s 0.25 percentage increase, major progress in fighting inflation is apparent. After one month, in the new year, market indices are drifting higher. Led by the tech-heavy Nasdaq Composite and many surprising earnings reports the average has risen 10% … Read more…

(Justin Vaughn, Editor, Options Trading Report) Stocks finished last week with robust swagger, as the tech driven Nasdaq Composite favorites posted some surprise earnings results, amid some massive announced layoffs. The market came to life on Monday as stocks showed optimism, as all indices were stronger. The Dow Jones Industrial Average was up 259 points or 1.2%, with the S&P 500 edging up 47 points. The tech heavy Nasdaq sprinted up 2% or 223 points, … Read more…

(Justin Vaughn, Editor, Options Trading Report) Stocks finished Friday on the upswing after a week of peaks and valleys. Investors and traders watched closely as a few ‘big banks’ showed earnings that were surprisingly ‘good.’ As interest rates increase, loans become more profitable, generating more fees and revenue, as seen in the latest quarter. As the week opened, more bank earnings were sprinkled with some positive and a few that were hurt by losses. Nearly … Read more…

(Justin Vaughn, Editor, Options Trading Report) The market finished last week’s session with the Dow Jones Industrial Average soaring nearly 700 points, while the S&P 500 and Nasdaq Composite gained 2.3% and 2.6% respectively. It marked the first week of 2023 with increases in the indices. A big factor in the positiveness of the market was the Labor Department’s monthly report. As data showed less jobs added, and a definite thawing of wage increases, all … Read more…

(Justin Vaughn, Editor, Options Trading Report) As the new trading year kicked off Tuesday, to a shortened week, much of the same feeling emanated, echoing the last days of December, 2022. Stocks showed little optimism and slumped, ending the session with the S&P 500 ending off 0.40%. The Dow Jones Industrial Average finished the day down only 12.66 points, with a lackluster day. Of the three indices, the Nasdaq dropped the most, off 0.76%, as … Read more…

(Justin Vaughn, Editor, Options Trading Report) 50 years ago, Yale Hirsch recorded in his “Stock Trader’s Almanac” a history of the last five trading days in December and the first two trading days in January, the rise and fall of the S&P 500 average, called the “Santa Claus Rally.” According to the ‘Stock Trader’s Almanac,’ the stock market has edged up 1.3%, on the average for the 7 market days of December and January. During … Read more…

(Justin Vaughn, Editor, Options Trading Report) The market opened Monday, continuing with the trends of last week, with fears overtaking investors and traders. Economic conditions are at best showing signs of continued uncertainty, as manufacturing and the services industry are struggling. Consumers are more apprehensive in their buying habits, more cautious after digesting massive amounts of negative inflation information. The housing market, new and existing, is slowing big-time as borrowing costs are pricing many out. … Read more…