Data and Charts that Matter This Week
Hey There Income Hunter, The S&P 500 held the highest net-negative gamma strike at 3900 last week. The level held twice this and, as markets moved higher, traders sold volatility, which led to a short covering rally. Put selling and call selling dominated activity towards the end of the week. On the fundamental side, a […]
Cue the Money Printing!
Hey There Income Hunter, Well, the only solution that Europe has come up with to address the most serious energy crisis in history is … Printing money. The US will not be far behind as Western nations will be forced to make one last attempt to save their economies. This past […]
No Regard for the European Economy!
Hey There Income Hunter, The European Central Bank announced its rate hike yesterday, which initially sent stocks plummeting only to be squeezed higher after hitting support … Then, similar to what the Fed likes to do, the ECB sent post-meeting leaks of another .75% rate hike in October and stocks whipsawed back down near the […]
Russian Oil Price Caps Will Backfire
Hey There Income Hunter, Here we go again … Another desperate move by desperate “leaders.” G7 ministers have agreed on a price gap for Russian oil. Here is how it works … Countries that have not imposed outright import bans on Russian oil can now import oil if it is purchased below a predetermined price. […]
US Interest Rates Causing Pain
Hey There Income Hunter, It is crunch time in the inflation/recession battle. The signpost to pay close attention to is the difference between the interest expense the US pays on its Treasury bond debt and US tax receipts. It’s the Ohio State-Michigan of economic data. Currently, the net of the two on an annual basis […]
Fed Admits It: It’s High Inflation vs. Depression
Hey There Income Hunter, The most important information revealed for the market last week was a white paper issued by the Kansas City Fed in conjunction with Johns Hopkins University titled … Inflation As A Fiscal Limit The framework for this critical paper states … Low and stable inflation requires an […]
Jobs Report: Getting Back to Work
The job report overall was down, as the headline was a rise of 315,000 – 15,000 above expectations – while the two previous months were revised down by more than 100,000. The household survey saw a job gain of 442,000, plus a large jump in the size of the labor force (786,000) pushed the unemployment […]
SPX 3900 Draws In Buyers
It’s Friday, so strap in … The 3900 level is the highest net negative gamma put strike for SPX. What does that mean for you? It provides a strong support level for the market since some long put holders may have been looking for a trade down to that level, so they […]
A Killer Diagonal to Kickoff September
Hey There Income Hunter, We are heading into the most volatile and pivotal time of year. September is not only the start of fall … It is also the start of the seasonal fall in the stock market … Remember, over the past 30 years, September has been the worst month […]
Is it Time for the $ to Reverse Course?
Hey There Income Hunter, The new most crowded trade may be a long dollar position vs a short euro. Now, you probably know I hate joining the crowd on trades because, by definition, the probability is when things go against you, it will happen very fast. It’s similar to being in a jam-packed restaurant trying […]