Powell's Inflation Battle

Powell’s Inflation Battle – by Justin Vaughn

(Justin Vaughn, Editor, Options Trading Report) It Did Happen…Jerome Powell unleashed another bit of tightening…a 0.75 percentage-point interest-rate increase on Wednesday, surprising no one, as even the sharpest economists predicted. He was quick to indicate that ‘more increases’ might be needed, and would come monthly. Investors and traders alike appeared to accept the news in stride sending the markets higher and welcoming the ‘help’ as a step in the only direction possible in controlling inflation. … Read more…

roller coaster

A Roller Coaster Economy – by Justin Vaughn

(Justin Vaughn, Editor, Options Trading Report) Tuesday’s ‘jack rabbit’ rise in the Dow Jones Industrial Average of 754 points is a huge boast of investor confidence amid flat showings by the indices over the past month. Investors and traders alike were swayed by a new release of earnings. Both the Nasdaq Composite and the S&P 500 sported significant gains of 353 and 105 points respectively. Investors are buoyed by positive news that suggests the general … Read more…

aggressive inflation

Aggressive Inflation – by Justin Vaughn

(Justin Vaughn, Editor, Options Trading Report) The markets opened with uncertainty Monday, with little direction, as investors and traders were in anticipation of the inflation number to be announced early Wednesday. The Labor Department released those figures and the numbers roiled, as inflation soared to a 40 year high in the month of June at an alarming rate of 9.1%, an over-whelming figure. This is the fastest inflation since 1981. Just about every consumer product … Read more…

Half year of blues

A Half Year of Blues – by Justin Vaughn

(Justin Vaughn, Editor, Options Trading Report) The three benchmark indices finished the first half of 2022 markedly lower, numbers that echo the economy. The S&P 500 fell 20.6%, the most in 52 years. The tech-focused Nasdaq Composite led all indexes, dropping a note-worthy 29.5%, the largest decline ever. The Dow Jones Industrial Average lost 15.3%, with its value stocks suffering less. It too had the worst half since 1962. The interest hikes, supply problems, job … Read more…

Muddy market

The Muddy Market – by Justin Vaughn

(Justin Vaughn, Editor, Options Trading Report) Across the board, this week stocks have edged lower, with the high-techs being abused to a greater degree. Investors and traders alike are worried about the future tightening and the effects of the early moves by the Federal Reserve. Chairman Jerome Powell has warned that with the already imposed rate increases and the expected future increases that the economy could ‘soften’ and lead to a more sustained fall and … Read more…

attacking inflation

Attacking Inflation – by Justin Vaughn

(Justin Vaughn, Editor, Options Trading Report) Markets opened cautiously Thursday as investors and traders were digesting a week filled with much concerning financial news, and the slide began. Stocks began to react with ‘sincerity’ as downward moves were apparent in all sectors, and affected all indices with concern. The S&P 500 was off 3.,8%, with the Dow Jones Industrial Average rocked, off 737 points. The tech-focused Nasdaq Composite fell 4.6%, leading the sliding Indices. ‘Fateful … Read more…

Wandering market

The Wandering Market – by Justin Vaughn

(Justin Vaughn, Editor, Options Trading Report) Big news in the job market, as more than 390,000 new jobs were posted this week, giving traders and investors renewed confidence. Also, signs of the economy beginning to ‘chill’ as seen in several areas, namely the housing market supply. Consumer spending slowed, as saving accounts began to steady as the Fed keeps tightening and is undeterred in its mission to control and bring down inflation. Jerome Powell has … Read more…

Market optimism

A Sudden Surge – by Justin Vaughn

(Justin Vaughn, Editor, Options Trading Report) Friday was a Bull…All indices scored higher, with reassurances that…maybe the bear is pausing, or even backing off. As was expected positive earnings and good news in general ‘pushed’ the investor into a comfort zone for the first time in many months–all the way back to November 2020. This is good news in several sectors such as household spending, the liberal use of pent-up savings accounts, and of course … Read more…

Awakening bear

The Awakening Bear – by Justin Vaughn

(Justin Vaughn, Editor, Options Trading Report) Trying to elude the Bear…With the indices suffering their eighth consecutive weekly loss and skidding into ‘Bear’ territory, investors have become ‘shell-shocked’ and eager to divest. Already nervous over inflation, Covid-19 peaks, the frustrating Ukraine War, turmoil in the trading market deepens with the depressing conditions. As stocks got hammered all week, with few peaks, and mostly valleys, a cautious rally late Friday nudged the Dow a little higher. … Read more…

Markets Under Pressure

Markets Under Pressure – by Justin Vaughn

(Justin Vaughn, Editor, Options Trading Report) Another dizzying week of peaks and valleys, with the indices finishing lower…again. Every sector of the market was breached, even the technology-focused Nasdaq Composite could not escape finishing in the red. Its weekly loss was 2.8%, after whipsawing all week and finally gaining some of the ‘loss’ back late Thursday and into Friday. The index hit a low, down 8.5% early in the week, recovering nearly 6% of the … Read more…