Hey Traders! It’s only Tuesday, yet so much has already occurred in the market. Bank news rattled the markets last week and continued rattling them over the weekend. CPI data hit this morning, and it was in line with expectations. I view that as a positive because anything other than an inline reading could have been disastrous for the market after last week’s bank stress. The Fed has another policy meeting next week, and now, in addition to inflation, they … Read more

The indexes have been sloppy, in addition to being relatively weak. The choppiness has some benefits, though, as this choppiness has meant that squeezes are consolidating everywhere. I can’t say I recall a time in which I have seen so many squeezes across so many different indexes and sectors simultaneously. What does that mean? It means that pressure is building, and it’s ready to break out. Let’s look at the Nasdaq futures daily chart below. We are stuck between about … Read more

Hey traders! Federal Reserve Chair Jerome Powell is shaking markets again, and it’s time to look for tickers we can short on the way back down. To do this, I like to look for relative weakness stocks in sectors also demonstrating bearish setups. I like to do this via bearish butterflies because it gives me the best risk to reward and a trade with a low debit, especially when compared to buying puts. Checkout my video newsletter on the Consumer Discretionary … Read more

Mortgage Rates If you haven’t heard, mortgage rates just hit 7% again. The 10-year treasury index, and rates along with it, are hitting highs not seen since last October when rates topped out. We got a bit of a reprieve on the upwards trajectory of rates throughout December and January, and the icy-cold housing market picked up a bit, sparking some hope. But, that pullback in rates was nothing more than the completion of a very bullish chart pattern in … Read more