Reflections

(Justin Vaughn, Editor, Options Trading Report) A combination of a possible lower interest rate increase and anticipation of a lowering of inflation on Wednesday’s CPI announcement, drove the market higher. It was a hallmark day for the Dow Jones Industrial Average as it soared 528 points or 1.6%, while the S&P 500 added 56 points. The tech heavy Nasdaq jumped 139 points, with a positive market on Monday. “We think we’ve seen peak inflation,” said … Read more…

(Justin Vaughn, Editor, Options Trading Report) Stocks retreated across the board on Monday’s opening. Traders and investors were increasingly apprehensive that the Federal Reserve will carry on with interest rate hikes well into next year, ‘riding hard’ on combating inflation. The ‘big’ banks reacted more seriously, as they are affected by rate increases to a greater degree in adjusting their own rates. The December 13th CPI number release will give the Fed more long term … Read more…

(Justin Vaughn, Editor, Options Trading Report) The market opened this week… on the ‘weak’ side, as many distractions and up-coming events loomed over investors and traders. China’s run-a-away Covid problems and the effects worldwide have dampened many economies. At home the Chinese government’s severe lockdowns have spurred riots in major cities, disrupting all aspects of the economy. Oil slid all week, continuing its downward trend, now its lowest level in ten months. The overall general … Read more…

(Justin Vaughn, Editor, Options Trading Report) After the market finished lower on Monday, and after investors and traders had time to digest recent financial announcements, a ‘bit’ of confidence began to emerge on Tuesday. The Federal Reserve Vice Chair, Jael Brainard, cautiously remarked that maybe a move to slow rate increases would be ‘befitting’ moving forward. That comment gave the market a significant boost with all three indices moving upward. Other news sparking the market … Read more…

(Justin Vaughn, Editor, Options Trading Report) Stocks stayed positive to open the week…with anticipation at a ‘high.’ Looking forward to two major announcements, Mr. Powell’s rate increase on Wednesday and the Consumer Price Index release on Thursday for October, clouded the markets, and dimmed investors and traders aggressiveness. The indices were ‘mellow’ with little definition of direction. The day after election day, early numbers indicated Republicans were not making the early predictions of taking both … Read more…

(Justin Vaughn, Editor, Options Trading Report) The market soared Friday (10-28) as investors and traders showed confidence, with the Dow Jones Industrial Average surging up 800 points, finishing the week on a ‘high note.’ The tech heavy Nasdaq Composite soared a whooping 2.9%, up 309.78 points. The solid S&P 500 was up 2.5% or 93.76 points, with all sectors of the average contributing. All in all a terrific finish for the week, and much needed … Read more…

(Justin Vaughn, Editor, Options Trading Report) The market roared ahead Monday, in sync with Friday’s closing, as the Dow Jones Industrial Average soared 400 points.  Investors and traders were seemingly  uplifted by a possible lower tightening figure, just maybe a 50 basis point increase for October.  Many feel that a ‘downward’ number would signify more caution and concern regarding the initiation of a recession.  Even after the Fed raised rates by 75 basis points three … Read more…

(Justin Vaughn, Editor, Options Trading Report) Peaks and Valleys marked a turbulent week as inflation ruled investors and traders. The markets floundered with anticipation of the release Thursday of the (dreaded) CPI figure for September, at 8.2%, just a bit below August’s 8.3%, hardly a positive. A smattering of corporate earnings in the financial area were somewhat negative as big banks showed lower profits and listless growth. As earnings emerged from several sectors, a majority … Read more…

(Justin Vaughn, Editor, Options Trading Report) After a whip-sawed week of ups and downs, investors and traders were looking for some ‘bit’ of good news to build some confidence. A positive jobs report showed employers added over 263,000 hires in September, pushing the unemployment rate down to 3.5%, from 3.7%. As this ‘good news’ is normally a booster for the market, it actually was a ‘downer,’ as it prompts the Fed to rethink the inflation … Read more…

(Justin Vaughn, Editor, Options Trading Report) Stocks rebounded Monday, with the indices showing new found confidence, after months of whipsawing, sending multiple signals. The Bear disappeared for a while…with signs that just maybe October was saying good-bye to a frightful September. Monday’s indices surged, with the Dow Jones Industrial Average adding 765 points.. The S&P 500, benchmark index, tacked on 92 points. The Nasdaq Composite followed suit. And Tuesday seemed to find the groove that … Read more…