Multi-Billion Monthly Expiration Today
Hey There Income Hunter, Today is the end of what has become the most sensible cycle in capital markets … That is the monthly expiration cycle. As option values continue to grow and the tail continues to wag the dog (option flow drives stock prices), then understanding the patterns of the expiration cycle becomes […]
This Rally may be About to End
I always like to look at trading as a series of cycles and one of the cycles I have been studying lately is the OpEx cycle… The monthly and quarterly expiration cycles make a lot of sense as a natural beginning and end to a cycle. Expiration wipes the slate clean for investors where the […]
Has Power Shifted Back to China?
Hey There Income Hunter, Another big day in China is giving more credibility to a turnaround there. Banks are jumping on the bandwagon as Bank of America is now “tactically bullish” on Chinese equities. Even the Oracle of Omaha Warren Buffett is jumping in the pool, with a cool $5 billion investment in Taiwan Semiconductor […]
Data and Trades to Watch this Week
Hey There Income Hunter, It was a crazy month last week … Well, that really is what it felt like … Midterms, CPI, FTX, Twitter/Musk issues … There are a lot of unanswered questions, and don’t expect volumes to slow down as we head into monthly expiry (OpEx) this week … OpEx […]
The Fall Rally Has Some Legs
Hey There Income Hunter, Usually this time of year, you start humming songs like It’s Beginning to Look a Lot Like Christmas.” But as a trader, after the incredible week we had,it could be It’s beginning to look alot like August. And we are getting all the familiar good tidings including: A VIX crush that […]
CPI Triggers Buying Spree
Hey There Income Hunter, CPI gave the market an early Christmas present yesterday … Headline year-over-year CPI came in at 7.7% vs 7.9% expectations Core CPI came in at 6.3% vs 6.5% expectations Stocks saw a pretty incredible move, with every sector finishing higher as this report was the first sign […]
FTX Crypto Exchange Meltdown
Hey There Income Hunter, We saw blood in the Crypto markets as the FTX exchange ran into liquidity issues yesterday. As you can see in the snapshot below, there has been serious damage done Woof. The problem here is exchanges take in altcoins as collateral against loans but as soon as there are any whispers […]
Investors’ Vengeance
Hey There Income Hunter, Last Friday was a monumental day. It wasn’t a news event that moved markets, but rather the reaction to news that made the difference … Powell tried his best to continue the hawk talk, but the cat was already out of the bag. It just took the […]
Data and Charts You Need for This Week
Hey There Income Hunter, Sector performance last week left plenty of signs that stocks will remain entrenched in a bear market … As you can see in the graph below, sectors that underperform in a slow growth, slow inflation environment – which is classified as a Power Income Stat 4 bear market – certainly are […]
China’s Reopening Is A Big Problem for The Fed
Hey There Income Hunter, Now that President Xi has gained complete control of the Chinese Communist Party, he is starting to flex his muscles. The yuan had its best day yesterday since 2010 (+1.6%) and the CSI China Internet ETF (Ticker: KWEB) is up over 30% from its low. There has also […]