Yo Pit Crazies,

The Federal Reserve cut back on QE in October 2021 and the market peaked right around there.

Cause-and-effect is a big deal when the Fed gets involved in stocks.

I can remember there were only a couple of 2% up-days in my first two decades of trading … then the Fed went nuts with QE in 2009 and we have been stuck with it for 13 years.

Bloomberg reported yesterday that QE served no real purpose.

I say it did serve a purpose … to send the Federal deficit into orbit.

Now the Fed needs some tough love. 

The question is how much the economy has to break to get the central bank to stop spending.

We will get some answers today.

So what do we do?

Find good stocks to buy at cheap prices

Right now, risk is stuck with sovereign nations.

Or, more precisely, the folks who bought bonds paying zero percent interest rates.

It is clear they are stuck with them, but countries will have to roll that debt for a real interest rate eventually.

Those issues are for another time and right now lots of stocks are at decent prices.

I don’t think the S&P 500 represents a bargain here.

But stocks like SouthWestern Energy (Ticker: SWN) do look like a bargain.

It will end up in the OP Mentoring Div+ strategy soon enough.

If you want to learn new trading techniques, OP Mentoring or our Pro Program is a good place to start. Call our Customer Care team at 1-888-872-3301 for details, credits and convenient payment options.

The Rundown

Volatility Edge

Mark closed a short term straddle in SPY for a 25% gain Tuesday.  Riding that cheap IV.

To Your Trading Success,

AG