Good news and bad news. Which one do you want first? The good news is that the Fed will still be accommodating to us investors and continue holding our hand through 2023. Powell said earlier today that there should only be 1 or 2 rate hikes toward the end of 2023. These next two years are going to be a new roaring 20's. Don't forget there was a Pandemic in NYC in 1918 and what happened two years later? Also, don't forget the Great Depression followed the 20's.
The bad news is that the Federal Reserve expects inflation will climb to 3.4 percent this year, higher than the central bank’s previous forecasts. This is obviously the reason that started the sell off. But the silver lining is that everyone already new this elephant was in the room, therefore I don't expect to have such a negative impact.
With that said, summer months are historically, usually hard on a lot of sectors and we are a couple days removed from all time highs. I wouldn't be surprised if all major indices dip to supports. I sold close to $100k in my long term investment portfolio yesterday and have cash ready on the sides for buying future dips this summer, and to rearrange for the inflation trade.
Also, can someone bring Bernanke back?
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4 ALERTS TRIGGERED IN THE DISCORD TODAY
Alert triggered: CAT Touching Lower support, RSI Oversold, October Calls on CAT, touch. What a beautiful alert, shout out Trend Spider. Perfect bounce on the lower support. Many indicators showing oversold. There is a big volume shelf that it needs to pass, but this is a good inflation trade in my opinion. Wait for another confirmation candle that it is indeed bouncing if you want to play it safe right now I like October calls.
Alert triggered: ADBE $540P; wait for confirmation candle on the 4h. on ADBE, breakthrough, Adobe broke through the trend line and fell today. I expect it to pull back in around a week closer to the bigger volume shelf and the MAs. I'd go small here, but like this position.
Alert triggered: BABA Touching Lower Support; $220 dated calls, Wait for Confirmation Candles on BABA, touch. Another beauty alert. $BABA bounced perfectly on the lower support. Huge discounts for the amazon of China. June is consistently a hard month and there is a lot of volume, however I think this is a great opportunity for LEAPS.
Alert triggered: BHP $80c dated, midterm swing, on BHP, bounce. BHP is riding still on my lower support. This is a perfect inflation trade IMO and possibly a good time to enter. I personally think this support is strong enough to hold, but the end of this week will tell us more. I like dated calls, LEAPS or commons here.
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PICKS THIS WEEK:
$OKTA Call +25%
$ZM Put +31%
$DIA Call +0%
$NAIL Commons -14% (ongoing)
$GPS Commons +3.2% (ongoing)
Another big day tomorrow!
REMEMBER: Make sure to take profits! Its better to take a little off the table then none!
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Waiting for set ups to trigger on the following before entering options:
"The stock market is a device for transferring money from the impatient to the patient." -- Warren Buffett.
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