© Copyright 2022 eOption, a division of Regal Securities, Inc., Member
FINRA/
SIPC |
Important Disclosures
950 Milwaukee Ave., Ste. 102 | Glenview, IL 60025
The information on this web site is for discussion and information purposes only. All accounts accepted at the discretion of eOption which accepts customer orders only on an unsolicited basis, and does not make any recommendations regarding any security or securities product with the possible exception of orders executed by our full service bond desk. Nothing contained herein should be considered as an offer to buy or sell any security or securities product. Online trading has inherent risks due to loss of online services or delays from system performance, risk parameters, market conditions, and erroneous or unavailable market data.
FINRA BrokerCheck reports for Regal Securities and its investment professionals are available at www.finra.org/brokercheck.
Options Disclosure: Options involve risk and are not suitable for all investors. Prior to trading options, you must be approved for options trading and read the Characteristics and Risks of Standardized Options. A copy may also be requested via email at support@eoption.com or via mail to eOption, 950 Milwaukee Ave., Ste. 102, Glenview, IL 60025. Online trading has inherent risks due to loss of online services or delays from system performance, risk parameters, market conditions, and erroneous or unavailable market data.
eOption Commissions: Broker-assisted orders are an additional $6. Option strategies involve multiple purchases; therefore your transaction costs may be significant for option strategy trades. A commission rate of $2.00 for equities and $3.99 + $.10/contract for options, per execution, applies to orders entered and filled by eOption's Auto Trade Desk and does not apply to customers who enter their trades directly into the eOption platform and are not utilizing the Auto Trade desk.
Broker Comparison: The competitor rates from published websites were verified on 3/1/2022 and are believed to be accurate, but not guaranteed. Commissions are subject to change without notice. At some firms, commissions may not reflect broker-assisted fees, orders over 1,000 shares, penny stock trades, OTCBB, pink sheet stocks or foreign stock orders. Firms may offer reduced commissions if additional criteria are met.
Blog & Commentary: eOption is neither affiliated with, sponsored by, nor endorses commentary and the opinions expressed are solely their own. Content is provided for educational and informational purposes only and eOption cannot attest to its accuracy or completeness. No information provided has been endorsed by eOption.com and does not constitute a recommendation by eOption to buy or sell a particular investment. You are solely responsible for your own investment decisions, and eOption makes no investment recommendations and does not provide financial, tax or legal advice.
The Market Has Only Done This 3 Times In the Last 25 Years
www.1option.com
Last Friday the market rejoiced when the Fed Chairman said that he is not in a hurry to raise interest rates or to taper. The market is addicted to easy money and this was music to its ears. The S&P 500 rallied on the news and it added to those gains yesterday. This will be a busy week for economic releases and the price action should generally be positive ahead of the holiday.
Earnings season is behind us and the results were good enough to hold recent gains. The expectations are high and valuations are stretched.
The economic news this week includes ISM manufacturing, ISM services, ADP, and the jobs report. I am expecting solid results that are slightly below expectations. The reaction should be fairly muted.
Many parts of the US are shutting down because of the spread of Covid. This is one reason the Fed is sidelined.
Swing traders with a 3-4 week horizon should stay sidelined. This is a seasonally weak period and the price action for the SPY has been very choppy. Trading volume improves during these drops and snap-back rallies and then it dries up. We could see a more pronounced market decline in September. In the last 25 years there have only been 3 times when the S&P 500 has closed higher seven months in a row. August looks like it will close higher and this would be the seventh month in a row with higher closes and the fourth time it has happened. There have not been 8 consecutive months where the market has closed higher in the last 25 years. The SPY is bumping up against an uptrend line that connects the highs on a weekly chart and I feel that resistance will be stiff at this level.
Day traders need to wait for support is this morning. Use the opening dip to find stocks that have relative strength. The ECB tapering talk spooked the market a little this morning, but the futures have only moved 8 points. Some of the move lower might just be profit taking after an incredible run the last two weeks. This could be a fairly dull day ahead of major economic releases as the market digests recent gains. Overseas markets were up. End of month/beginning of the month fund buying should provide a bid for the next few days.
Support is at SPY $445 and $450. Resistance is at $453.
Content is provided by OneOption, LLC, which has no affiliation with Regal Securities, Inc. (“Regal”) This commentary is provided for information purposes only, and is not a recommendation, offer or solicitation by Regal to buy or sell securities or to adopt any investment strategy. Regal has not participated in the creation of the OneOption content and does not directly or indirectly endorse the content. Any reliance on this material is at the sole discretion of the reader.