Saturday, January 29, 2022

Fed Comments Help To Settle Global Market Expectations

The recent Fed comments should have helped settle the global market expectations related to if and when the Fed will start raising rates and/or taking further steps to curb inflation trends. 

Additionally, the Fed has been telegraphing its intentions very clearly over the past few months, providing ample time for traders and investors to alter their approach to pending monetary tightening actions. Read the full Fed Statement here.

In my opinion, foreign markets are more likely to see increased risks and declining price trends for two reasons. 

First, at risk nations/borrowers struggle to reduce debt levels. 

Second, foreign market traders/investors struggle to adapt to the transition away from speculative “growth” trends. 

I think the U.S. Dollar may continue to show strength over the next 4+ months as the foreign traders pile into U.S. economic strength while the Fed initiates their tightening actions.

So it makes sense to me that global markets would recoil from Fed tightening while debt-heavy corporations/nations seek relief from rising debt obligations....Continue Reading Here.

Monday, January 17, 2022

Death, Taxes, and Time Decay

Few things are certain in life. But as the old saying goes, there is nothing quite so certain as “death and taxes”. As an Options Trader, I would enthusiastically add option time decay to that list.

Options offer traders and investors more leverage and risk mitigation than just purchasing shares outright. For example, if I were to purchase 100 shares of a stock at $100 per share, my total capital outlay would be $10,000. Options give us the right to buy or sell at a certain price for a pre-determined length of time.

I could control that same 100 shares by purchasing an "At the Money" call with a $100 strike price with 90 days to expiration for perhaps $6 per share, or $600 total capital outlay. 

That’s powerful leverage. My downside risk is also limited to....Continue Reading Here.

Stock & ETF Trading Signals

Stock & ETF Trading Signals