Disinflation Takes Hold – by Justin Vaughn

(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…

Investors’, Traders’ and the Fed – by Justin Vaughn

(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…

The Stagnant Economy – by Justin Vaughn

(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…

Inflation Simmers Down – by Justin Vaughn

(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…

Old Lang Syne? – by Justin Vaughn

(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…

Will Santa Claus Stop At Broad & Wall? – by Justin Vaughn

(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…

Peaks And Valleys Rule – by Justin Vaughn

(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…

The Battle Weary Investor – by Justin Vaughn

(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…

The Scary Economy – by Justin Vaughn

(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…

Hello Bull, Adios Bear – by Justin Vaughn

(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…