MTM Options Trader Newsletter - Most Important Trading Data: CPI vs. PCE

[image]() [image] This Week in the Market The Federal Reserve’s rate hike took its toll on the market and broke the uptrend with stocks closing lower for the week. A temporary move by the Dow above its 200-day moving average did not last long. Fed members moved interest rates 75 basis points higher, adding that rates may keep rising longer than anticipated, although at a slower pace. Market participants were not happy. Looking ahead, the S&P 500 is still trading above a significant potential support level (around 3,660), so expect some pushback if that level is tested. Despite the market moving lower, implied volatility levels kept sliding as well. Are traders and investors not too worried about an even larger drop? There aren’t many economic reports slated for this week, but there is one very important inflation number due out on the 9th: CPI. With tensions high and rates moving higher, this number becomes even more important. Quarterly earnings are still waning, but several big-name stocks will release numbers over the next few weeks including several retailers. Remember, cash is a position and consider collars to protect your stock positions. Have a healthy, safe and happy week! Nov 7: Consumer Credit Nov 9: Wholesale Inventories Nov 9: Consumer Price Index Nov 9: Jobless Claims Nov 9: Federal Budget [Read Our Blog](=) Most Important Trading Data: CPI vs. PCE We saw a pivotal Fed Announcement this week. It may be the end of the 75-basis-point parade that’s been waltzing down Wall Street for a good part of this year. We’re now starting to see varying thoughts of what the Fed will do next, and not just from outlier accounts on Twitter, but from trusted thought leaders. The CME Fed Funds contract is pricing in almost a 50-50 chance of a 50-basis point hike and a 50-50 chance of a 75-basis point hike. What’s next? Data will be the key drivers. But what data? [Continue Reading ...]() MTM Watchlist Here are a few trade ideas we will most likely explore this week in group coaching class: SPY – We have modeled out numerous iron condors and double calendars over the past several months with much success. Count on that trend to continue this week. MSFT – The stock still looks weak as it keeps falling. Look for bear call spreads at potential resistance levels like the $220 area. HAL – If energy and oil keep rising, so will these energy stocks. More potential bull put spreads will be considered this week on not only HAL but others as well. [image]() The strategies in this newsletter are for educational and informative purposes only. All information disclosed in this newsletter should not be considered complete in its entirety. Market Taker Mentoring, Inc. will not be held responsible for changes, oversights, errors or omissions. Dates, prices, news and other information may not be accurate. Please verify all information before trading. You alone are responsible for your own investment decisions. Options involve risk and are not suitable for all investors. Before trading options, please read Characteristics and Risks of Standardized Option (ODD), which can be obtained from your broker; by emailing investorservices@theocc.com; or from The Options Clearing Corp., 125 S. Franklin St., Suite 1200, Chicago, IL 60606. No statement in this newsletter is intended to be a recommendation or solicitation to buy or sell any security or to provide investment or trading advice. Traders and investors considering options should consult a professional tax advisor as to how taxes may affect the outcome of contemplated options transactions. Copyright Market Taker Mentoring, Inc. 2008 - 2022. All rights reserved. Reproducing or redistributing this content is a violation of federal law. [image] If you do not wish to be contacted via email, you can unsubscribe using this link: [Unsubscribe]( Unsubscribing from email notifications DOES NOT cancel your class, subscription or recurring payments. We recommend that current students do not unsubscribe from email notifications. If you unsubscribe from email notifications, you will not be notified on how to access the classes or subscriptions in which you are enrolled. Market Taker Mentoring, Inc. PO Box 117 Frankfort, Illinois 60423 United States