Overall market sentiment: bearish, flatlining, mostly because it has gone up by a significant amount and there’s still skepticism about rate hikes and inflation. My gut feeling also tells me a significant amount of people might start taking profits.
- US Treasury: 2.833%
- Yield Curve: downward slope but seems changing
- Inflation Rate: 8.52%
- GDP Report: Until September 29
- US Dollar Index: 106.41
- Mortgage Rates: 3-6
- Unemployment Rate: 3.5% (seems good as economy is slowing down)
- Crude Oil: $86.35
- SPY: $431.23
- VIX: 19.59
Says in the last hour of trading on Monday the market is keeping its gains.
Walmart strikes exclusive streaming deal to give Paramount+ to Walmart+ subscribers – source
This made the WMT stock jump up, plus, it sounds like they had good earnings.
Almost 60% of investors expect a 50 basis-point rate hike, while 40% expect a 75 basis-point rate hike.
- The stock market is looking better for now.
- Fund managers are more optimistic with how inflation is coming down and there are signs of a less aggressive rate hike.
- Generation X investors are increasing, as opposed to Millennials and Generation Z.
- DIJA and SPY were slightly higher, while NASDAQ was slightly lower.
- Mostly older and wealthier are taking up the investor pool
- stocks are turning lower as the end of the trading day approaches
- The big rally we have seen is probably from investors joining into the hype that peak inflation has been reached and things will get better from here.
- This article says the stock market went bearish in anticipation of the fed minutes.
- It says investors aren’t sure if the recent rally was simply a fad or if it’s a sign the stock market will keep going up.
- Inflation is still a critical concern because the Fed has said that they’ll keep raising rates throughout the year
- But investors are expecting with inflation going down that, the Fed won’t keep raising rates but the Fed hasn’t confirmed so it’s just a sentiment.
- Chris Verrone has reason to believe that the market going up is just a fad and will soon come back down. Because there’s no data to support that the Fed will pivot.
- depending on how hawkish the fed is, it can put a pause to the recent rally.
- BBBY meme stock is still having price action
- With the stock market going up so much, is the bear market over?
- According to article the 50 day moving of SPY dictates a bull market trend.
Here are the different strategies that can be used and in what sentiment.
- Covered Call
- when being bullish, but not too much
- Leap option
- Call spread
- Put spread
- when there’s stability, flatlining
- when there’s stability, flatlining
- Buying stocks
- How to close positions with a LMT to make maximum profits?
- When to know when to buy a stock instead of buying a put spread/naked?
- Since they’re both done when you’re bullish, what’s the difference between doing one over the other?
- It’s my understanding that a naked/spread put is more “safe” than buying the stock directly but what’s another benefit?
- Why does the 50-day moving average of SPY dictate a bull market?
I entered a 408/398 bull put for SPY even tho I believe there’s a short bear sentiment because by expiration date, I expect SPY to go back up. The only mistake I made is that I should’ve chosen a further out expiration date as September 16 is coming soon.
My SPY 437/447 bear call is negative about -$600 because it has gone down, but it’s still higher than when I entered the trade. I don’t think it will become profitable by expiration date but I also don’t think it will go higher than the lower strike price.
AAPL and COST are also negative by about -$500 with expiration date of September 16th, but I also don’t think they will become profitable before then nor go higher than the lower strike price.