The Next Stop For SPX

Daily Pit Stop [fstp, logo, header] February 2, 2024 [ag views, logo, header] No that was not the selloff in SPX I thought it was Is it more important that the Fed cuts rates or does not raise them? To investors it seems the latter. Traders liked the earnings this week, enough to keep stocks higher. SPX got back all of its losses from the Powell Pip Wednesday like it did not even happen.  If Apple Inc (Ticker: AAPL) earnings go ok, we start marching back up. [frep]Two week SPX chart with daily candles I bought some 500 level call calendars for the Standard & Poors 500 Trust (Ticker: SPY) today in OP Mentoring.  I also hedged them for a month with cheap VIX call spreads. You can see how I did it in my OP Newsletter tonight. [Speaking of today, the 0DTE crew is back at it and decent AAPL earnings should bring some fun and opportunity tomorrow. Sign up here.]( - AG  [logo, pit profits] Want to find YOUR winning fit? Give our Customer Care Team a call at [1-888-872-3301](tel:/1-888-872-3301) Monday-Friday from 9 a.m. - 5 p.m. EST. Or email them anytime at [support@optionpit.com](mailto:/support@optionpit.com)  [logo, header, fvix] Hey Traders! In today's video we'll cover: - How High Will The S&P Climb - Dissect the Earnings Aftermath - Levels In The Q's and Indexes [fvix]( [Click here to watch the video now!]( - Mark  [frep] Ticker of the week: AMD Hey Traders, This is the biggest week of earnings for the quarter…and maybe the most important for the year. On Tuesday night MSFT and GOOGL reported. On Thursday AAPL, AMZN, and META reported… When we add in the FOMC meeting that happened on the 31st and non-farm payrolls today on groundhog day…this might be the most important trading week of the year. So far in 2024 it has been the year of Chips…names like NVDA and QCOM have been off to the races. INTC had a really nice run until it reported…as did this weeks stock…one of the biggest chip makers. [Is it time to buy this company…or is it an easy short….read on.]( - Mark  [fpip] Next Stop in SPX Hi Shoppers, Wow! What a couple of crazy back to back trading days. Down $86 and then back up $61. I am going to say it again, I just don’t understand how “the market” could think that they would lower rates in March already. Just doesn’t make sense. They are already manipulating with raising and lowering interest rates. I don’t think they would look like they had an inkling of what they are doing if they were to cut after they just raised rates. It takes a while to take effect, everyone knows that. Maybe it’s me. Huge reversal yesterday, holy cow. Now we have some new earnings reports and we are up here testing the highs again. So where does the next resistance level come in, you ask? Here is my S&P 500 Index (TIcker: SPX) chart:  [pip] If we take out our previous high at $4931, which it looks like we will, our next stop will be $50 higher at $4980. Before I forget, if you missed us last night, Mark and I got together to talk about 0DTE options trading. [Here is the replay.]( [After that, I have a new trade idea in Delta Airlines (Ticker: DAL).]( - Licia  [fprm] It Ain’t Easy Being Green … or a Techie! Hey Influence Traders, Well, we called it. The Biden administration has halted new approvals for natural gas export projects. The administration wants to “conduct more thorough reviews.” When pressed on his reasoning, the President acknowledged that young and climate-focused voters are a key constituency. That, and some other news, will continue to fan the fossil fuel flames. I’ll dive deeper into that in a minute. But first, it has been a bad week for Tech executives. Senators went three rounds on the Hill with the heads of social media platforms. Lawmakers are concerned about child exploitation on social media platforms. They are also concerned about the spread of misinformation and disinformation. The grilling led Mark Zuckerberg to apologize to families for the suffering his platform has caused. Lawmakers have proposed 5 “child safety” bills, including the bipartisan, and heavily promoted, "EARN IT Act" and "STOP CSAM Act." Both would enable tech companies to be sued for content on their platforms. The heads of Twitter (Ticker: TWTR) – now X – did not get pummeled as badly as other executives. They were able to show that less than 1% of their users are under 18. Translation – they aren’t cool. Elon Musk can’t say the same. He is cool! But in a blow to his “carry around money,” a Delaware judge blocked his $55 billion pay deal. That fight is ongoing, and it will cause Musk to reincorporate businesses in Texas. I also anticipate more regulation around AI. The internet has led to a rise in the proliferation of (and claims of) false and disinformation in society. AI and deep fake technology will only exacerbate those problems. This week, the White House announced that it was mandating "protections" for AI. It will impose new compliance and reporting requirements on AI companies. This comes after nine different Departments, including Defense, Transportation, and Treasury submitted risk assessments to the Department of Homeland Security. Those findings will form the basis of both regulatory and legislative action. That will not bode well, particularly when the AI hype is dying down and investors are looking for real results. Back to gas. We were spot on with LNG, and there is more gas news in the works … [Spotlight on Oil.]( - Frank   [glossary, logo] There are plenty of terms in the trading world that need explaining. The Option Pit Glossary is here to help. Today's phrase is:  Over-the-Counter (OTC) Markets - refers to the process of how securities are traded for companies not listed on a formal exchange. OTC securities are traded via broker, dealer networks as opposed to on a centralized exchange. 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