LOOKOUT BELOW. 6M Daily in SPY, we've quickly dropped below most recent resistance at $373, closing in on YTD lows of $362. We saw some short covering late Friday, leading to a half-hearted rally.
esInvests Updates.
Rolling options is a central aspect to many of my strategies. However, there are a TON if misconceptions regarding the nuanced mechanics. Let's dig in here.
I connected w/ Bob Wheeler and podcaster and CPA to discuss taxes for trader. Check it out here.
Trading & Market Commentary. Rate raises & Fed messaging
The Fed raised rates another 75bps, taking the new target rate to 300-325bps
The Fed also clearly restated their focus on combating inflation. This will come at the cost of the markets.
We're expecting another rate increase at the next Fed meeting on 2 November. As of writing this, it's a 72.9% probability for another 50-75bps rate increase.
Exposure in IWM I entered in IWM to gain exposure as we close in on YE. I fully anticipate managing this trade either via adjusting or taking assignment simply because I'm still quite bearish short-term. However, it's important to maintain some level of exposure, so I'm striking a balance via smaller sizing.
On 22Sep in IWM: STO (10) 21Oct 164P @ 3.29
This isn't part of the $250K test account yet, I'll likely wait until the new year to launch those with a blank slate
Reports this week I'm watching
26 Sep: Dallas Fed Mfg Outlook
27 Sep: Fed Powell Speaks, US Durable Goods, US New Home Sales
28 Sep: Fed Powell Speaks, US Crude Oil Inventory
29 Sep: US Initial Jobless Claims, US GDP QoQ Revised
30 Sep: Eurozone CPI YoY, US Consumer Spending MoM
Be An Outlier!
Erik
I am not a financial advisor - I do not make financial recommendations and I do not provide investment advice. All content shared is for educational and entertainment purposes only.