BY ANDREW GIOVINAZZI
April 22nd, 2025
Yo Pit Crazies,
There is nothing like a week off to reset the mind and get the Spring Fever going again. It has been at least a whole year since I took a week off but I felt like it was a good time to over the Easter Holiday.
Speaking of earnings, Mark talked about Tesla Inc (Ticker: TSLA) earlier – you can check out what he had to say here.
I don’t know about you, but there is a lot of green on the screen for earnings on Tuesday. Aside from a divot in Haliiburton Inc (Ticker: HAL) and Raytheon Corp (Ticker: RTX), the earnings for stocks I follow are pretty good. General Electric Corp. (Ticker: GE), a key player in the industrial sector, performed especially well.
So the S&P 500 trust (Ticker: SPY) did a large about face from Monday to Tuesday.
Why did it do that?
DJT might be the greatest tweet fade ever
Here’s a useful chart from the Center for a Responsible Federal Budget — possibly one of the few groups that still seems serious about cutting spending. There was talk at one point about D.O.G.E. trimming $1 trillion in waste, but that’s looking less and less likely. As for slashing the $7 billion a year going to Harvard? I’m all for it. Why are taxpayers footing such a massive bill for the wealthiest universities in the country? Beats me.
This chart reflects what many people already suspect — a significant portion of the debt stems from COVID-era spending, and politicians aren’t eager to give that dough back. Fed Chair Powell is well aware and wants to see some action. President Trump knows this as well, but he’s caught between a Congress that won’t stop spending and a Fed that won’t lower rates. That’s the backdrop for where markets stand today.
Like with most issues, we just need a few more people to step up and say no. That alone could be enough to get the markets ripping.
Until then, buy dips and sell rips until any part of the graph above is getting addressed properly. That is when the bull will start to show its horns again.
To Your Trading Success,
AG
Andrew Giovinazzi
30-Year Trading Pro
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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