Reflections

(Justin Vaughn, Editor, Options Trading Report) The market was ‘frenzied’ Tuesday as investors and traders were besieged with many lasting concerns. The lingering First Republic Bank, SVB, and Signature failures, and unending inflation issues are pressing the market, that the worst is not over. Regional bank concerts are mounting. JPMorgan Chase’s Jamie Dimon (the biggest U.S. bank), ‘closed the book’ on First Republic Bank, winning the bid to absorb it completely, besting PNC (6th largest). … Read more…

(Justin Vaughn, Editor, Options Trading Report) Stocks were softer Monday and Tuesday, with the Dow Jones Industrial Average sliding 300 points at Tuesday’s close. The tech-heavy Nasdaq Composite and the S&P 500 sank 1.98% and 1,58% respectively, notable drops, as the market was aimless. The week is shaping up as many high-tech, and tech conglomerates are scheduled to release earnings in the next ten days, with the market awaiting reasons to be positive for buyers. … Read more…

(Justin Vaughn, Editor, Options Trading Report) Investors and traders nudged the indices a slight bit higher on Monday as the overall short term outlook is clouded by the many upcoming first quarter corporate earnings reports. Underlying concerns of interest rates and just what the Federal Reserve has up their sleeve adds more consternation. After the first round of large bank first quarter earnings releases last week, and the very positive earnings per share each bank … Read more…

(Justin Vaughn, Editor, Options Trading Report) Stocks lost ground on Wednesday, with the market again digesting ‘bad news; continuing high inflation, banking fears, and of course the looming recession, all of which are ‘dragging’ the market down. Some on Wall Street see a prolonged period of concern-possibly stretching to 2024. The strength of the labor market is a pivotal factor. As numbers are slowly weakening, the overall indication is positive, as jobs and wage increases … Read more…

(Justin Vaughn, Editor, Options Trading Report) The clock is ticking, TikTok, TikTok…The U.S. Government is closing in. Congress is taking action to ban TikToK, with many congressional representatives speaking out against CEO Shou Zi Chew, TikTok, and ByteDance. Mr.Chew was grilled repeatedly by members of the House Committee on Energy and Commerce. Representative Cathy McMorris Rodgers (R Wash.) accused TikTok of being a tool to manipulate America, adding that it should be banned. As you … Read more…

(Justin Vaughn, Editor, Options Trading Report) In the aftermath of the bank failures, and as regulators dig deep, the reality of unacceptable bank practices emerge, poor leadership and extreme greediness. In the recent rash of failures, bank leaders in general lacked good qualifications, did not have basic skills and were unscrupulous, intent on ‘filling’ their pockets, and that of their ‘cronies.’ First Republic Bank is the epitome of every aspect ‘gone wrong.’ Led by its … Read more…

(Justin Vaughn, Editor, Options Trading Report) A Roller-Coaster Week…fueled by three, possibly four bank failures, kept the market off balance, finishing Friday on a negative note. Gold and bonds took center stage as investors and traders looked again for safer havens amidst the bank crisis. Gold bumped up to $1,969.80, a high for the year and bonds were heavy buys. The University of Michigan released its Consumer Sentiment Index for March data on Friday indicating … Read more…

(Justin Vaughn, Editor, Options Trading Report) The nation’s 16th largest bank was taken by the Fed as regulators did not wait…they acted swiftly and efficiently to curb continued withdrawals that had totaled 42 million dollars on Thursday, as SVB endured one of the largest bank-runs. SVB Bank data was and is highly suspect, with unrealized losses of a staggering $16 billion, (Total assets of $200 billion). Nearly 18% of deposits were crypto related. Silicon Valley … Read more…

(Justin Vaughn, Editor, Options Trading Report) Stocks finished higher last Friday after a lackluster week. Investors and traders were ‘happy’ that several high flyers were having better than expected quarters. As the market opened up Monday, the mood was anxious in anticipation of the Labor numbers coming forth at the end of the week. Also, Jerome Powell’s upcoming appearance before Congress on Tuesday and Wednesday will most certainly stir the inflation pot. One subject to … Read more…

(Justin Vaughn, Editor, Options Trading Report) The Big News Friday…The release of the PCE (Personal Consumption Expenditures Index). The report, developed by the Commerce Department illustrates consumer spending, and it showed the trend is continuing to rise, up 1.8% from December, a compelling figure as it reflects the spending mood of the consumer. It also brings-to-bear that the inflation rate is reacting to the many interest rate hikes in attempting to dislodge inflation. Investors and … Read more…