© Copyright 2022 eOption, a division of Regal Securities, Inc., Member FINRA
| 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 firstname.lastname@example.org 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 Calm Before the Market Storm
Fasten Your Seat Belts!
PRE-OPEN MARKET COMMENTS TUESDAY – This is going to be a very important week. Earnings and interest rates drive the market and it is coiling like a spring inside of a D1 wedge. We are going to breakout one way or the other this week.
Now that I’ve set the scene, I have to tell you that I am going to miss all of the action. I will be out Wednesday through Friday.
This is a critical juncture for the market. Buyers and sellers have been active. The same forces from 10 months ago are still in play. This week institutions will digest the news and they will take a stance. When the dust settles, we will use technical analysis to see who has the ball. A breakout through the wedge needs to have follow-through. The breakout alone is not enough.
Tomorrow will be busy. ADP will report private job growth in January before the open and ISM manufacturing will be released after the open. In the afternoon the FOMC statement will be released. After the close Wednesday, META will post results. Thursday after the close AMZN, AAPL and GOOG will report. The next morning the Jobs Report will be released. We will be drinking water from a fire hydrant the next few days and these events will set the tone for the next month at minimum.
Swing traders need to wait patiently for a few more days. We will have our answer shortly. I believe the breakout or breakdown this week will set the tone for the next few months and we will take longer term swing trades based on that outcome.
Day traders use caution the next two days. This is the calm before the storm and we should expect light volume chop and some position squaring.
Support is at the major MAs. They important intraday, but they are pretty meaningless on a swing basis. The wedge is what matters and that should serve as your guide for swings. Resistance is at the high from Friday.
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.