BY ANDREW GIOVINAZZI
June 18, 2024
Yo Pit Crazies,
Mark goes live on Thursday with his Double Down 0 DTE strategy. There is nothing like finding a pattern that works.
I don’t know what made the VIX jump Friday but the only thing that jumped on Monday was SPX. After a tepid move down on Monday morning, the holiday week is shaping up to be a humdinger of all time highs in the SPX, Invesco QQQ Trust (Ticker: QQQ) and the Market Vectors Semiconductor ETF (Ticker: SMH).
On Wednesday, I used the FOMC Meeting as a catalyst for market activity for this week. I honestly thought I would get it last week but we did get a 100 point move just on the CPI number alone Tuesday to Wednesday. It is still running above the Fed target but not as hot as last month. I had purchased quite a few SPY calls in many of my programs last Wednesday/Thursday.
It was not going great Thursday- Friday. Then things got moving.
When the Fed speaks this happens.
I drew my trend line at the Fed Announcement
In the last year while rate changes were in play, the FOMC rate news was always good for 100 points. The more certain the Fed holds the line on rates, the more solid the stock rally since traders know what to expect. Stocks rally into more certainty so I expect 5500 plus this week in SPX. We are halfway there.
This will put us in a good environment for 0DTE as more certainty leads to good directional days. Just the ticket for Mark and Licia in 0DTE.
To Your Trading Success,
-AG
Andrew Giovinazzi
30-Year Trading Pro
See what's hot at option pit
CAPITOL GAINS: SMR Aug16 7 call closed for a 150% gain
DELTA STRIKE: VLY Mar15 8 puts closed for a 88% gain
PFE May17 26 calls closed for a 66% win
OP MENTORING: SPY Mar22/19 510 put calendars and 520 calls for 6.4% gain
OPTION SHOPPER: ERX Mar28 65 calls closed for a 90% gain