Hello everyone! Today i want to share some option strategies with you!1.Hmmm … 50 bps over 25 bps expected … trying to figure out if this is good or not longer term for stock market reaction based on the implications of this decision for 50 over 25 rate cut.Wonder if the FED is simply playing catch-up since it has been very conservative in past rate cut decisions when economic data was already showing signs of improvement (inflation, earnings, etc.) considering jobs numbers.Camp still looks mixed with some "experts" saying this is a good thing for the market while others disagree. We shall find out. Let's hear what J Pow has to say and see how the market reacts today and over the coming days. $S&P 500(.SPX)$ 2.Pre-earnings trade idea on:
Hello everyone! Today i want to share some macro analysis with you!1. $Gold - main 2412(GCmain)$ Wednesday (September 18) the New York session of the gold market fluctuated violently, after the Federal Reserve cut interest rates by 50 basis points, spot gold once refreshed a new record high, but Powell's speech made the price of gold from the highs fell sharply, and once fell below 2550.The Fed did initiate a rate cut on Wednesday as expected, announcing a 50 basis point cut. The Fed also expects the federal funds rate to be around 4.4% by the end of 2024.Fed policymakers decided to lower borrowing costs because they are increasingly confident that inflation is moving ‘sustainably’ towards the Fed's 2 per cent target. However, they acknowledge
U.S. stock markets reached all-time highs, but despite a 50 basis point rate cut, they closed lower. 🇺🇸 S&P 500 Index: -0.29% 📉 🇺🇸 Nasdaq Index: -0.31% 📉 🇪🇺 STOXX 600 Index: -0.50% 📉 🇯🇵 Nikkei 225 Index: 0.49% 📈 🇭🇰 Hang Seng Index: Market Closed 🇨🇳 CSI 300 Index: 0.37% 📈 U.S. stock markets closed lower, with the S&P and Nasdaq both down 0.3%. After the policy announcement, U.S. stocks soared to an all-time high, but the gains were quickly sold off, resulting in a lower close. $S&P 500(.SPX)$ $NASDAQ(.IXIC)$ $DJIA(.DJI)$ The CSI 300&nbs
What should investors care about after first 50bps rate cut?
The 50 basis point rate cut to start the cycle surprised at least half of investors.There are 25 basis points is the compensation for July.Many investors in the market point of view is that July can open the rate cut, and Powell in order to "stabilize" hard to see two more months of data off to September.The 50 basis points, in fact, is 25 basis points in September, plus 25 basis points in July compensation!Even 50 basis points, still behind the curve.According to the Fed's own point of view, this time is "calibrated policy stance" - do not want to fall behind the curve, but also do not want to signal the risk of recession, so the action to see at first glance seems to be very large, in fact, just behind the market too much to add.For the first time did not give the market "clear signal".P
✅✅I think a 50 basis point cut is not impossible. Currently, the two expectations are balanced, which means there is still a lot of suspense. Even data from the CME's "Fed Watch Tool" shows that traders in the interest rate futures market have recently predicted that the probability of the Fed cutting interest rates by 50 basis points tonight is as high as 64%, while the probability of a 25 basis point cut has shrunk to 36%. There are four scenarios for rate cuts: 1. A 25 basis point cut, Powell's speech is hawkish, suggesting that the subsequent rate cuts will be lower than expected; 2. A 25 basis point cut, Powell's speech is dovish, suggesting that the subsequent rate cuts will be faster; 3. A 50 basis point cut, Powell's speech is hawkish, suggesting that the subsequent rate cuts will
Analyzing the Market Reaction to the Fed's 50 Basis Points Rate Cut
On September 18, 2024, the Federal Reserve took a decisive step by reducing the federal funds rate by 50 basis points, marking a significant shift in U.S. monetary policy. This move, aimed at supporting a softening labour market and controlling still-elevated inflation levels, led to a variety of immediate reactions in financial markets, reflecting the complex interplay of investor expectations, economic indicators, and monetary policy. Market Movements The stock market initially reacted positively, with major indices like the S&P 500 and the Dow Jones Industrial Average hitting the day’s highs shortly after the announcement. This rally was underpinned by the relief among investors who had been anticipating aggressive action from the Fed to counteract recent economic slowdowns. However
I opened $Alphabet(GOOG)$ ,I invested further in GOOG stock after its victory in overturning a €1.5bn EU fine related to AdSense. This legal win reduces regulatory pressure on Google, boosting confidence in its continued dominance in the advertising space.
I opened $Microsoft(MSFT)$ ,I invested further in Microsoft due to its strong commitment to shareholder value through a dividend increase and a $60B share buyback program. These moves reflect confidence in its robust free cash flow and enhance long-term returns.
Global Markets End Mixed Amid Fed Rate Cut and Economic Data
Overview: Mixed Reactions Across Global Markets Global markets saw a mixed performance on September 18, 2024, as investors digested the Federal Reserve’s interest rate cut and economic data from various regions. While US and European markets closed lower, Asian markets posted modest gains ahead of the Federal Reserve’s decision. Uncertainty about future monetary policy direction kept volatility high across markets. US Markets: Fed Rate Cut Fails to Lift Stocks The US stock market ended the day in negative territory following a volatile session. The Dow Jones $DJIA(.DJI)$ dropped 103.08 points (-0.2%) to close at 41,503.10, and the S&P 500 $S&P 500(.SPX)$ <
$Tesla Motors(TSLA)$ $TSLA “If interest rates come down, margins will be good. If they don't come down, they won't be that good. " - Elon on the Q4 ‘23 earnings call. Rate cuts are here. He’s connected rates to Tesla many times, this looks ready to explode. Over $235 things get fun. Target of $250 by 10/10.
$Sunshine Biopharma Inc.(SBFM)$ Adva-27a Anticancer Drug Adva-27a is a small molecule designed for the treatment of aggressive forms of cancer. A Topoisomerase II inhibitor, Adva-27a has been shown to be effective at destroying Multidrug Resistant Cancer cells including Pancreatic Cancer cells, Breast Cancer cells, Small-Cell Lung Cancer cells and Uterine Sarcoma cells (Published in ANTICANCER RESEARCH, Volume 32, Pages 4423-4432, October 2012). We are the direct owner of all patents pertaining to Adva-27a including U.S. Patents Number 8,236,935 and 10,272,065. In December 2022, we entered into a research agreement with the Jewish General Hospital (“JGH”), to conduct the IND-enabling studies of Adva-27a (the “Research Agreement”). In August
Rate Cut Trading 2|landing or crashing? how to grasp the interest rate cut cycle!
David ChenDirector of Investment Researchchenqingwei@itiger.comSFC CE NO.: BUP836Powell's speech at the Jackson Hole Economic Symposium released the most definite and affirmative attitude towards interest rate cuts. The opening statement "The time has come for policy to adjust" directly ignited market enthusiasm.The entire speech provided two major key signals: Firstly, "The direction of inflation is very clear". With the current 3-month PCE annualized growth rate falling to 1.7%, the task of fighting inflation has basically ended, and subsequent policies will downplay the impact of inflation. Secondly, "We do not seek or welcome further cooling in labor market conditions" indicating that the Federal Reserve has officially started the next phase of the task "stabilizing the economy." At pr
I opened 5 lot(s) $DJT 20241115 50.0 CALL$ ,Volatility spiked for DJT. Although prices has been dropping and usually I dun sell calls on down days, the volatility spike is too attractive to ignore.
$TSLA 20240920 250.0 CALL$ Tesla has a stubborn resistance level at 232. The price action hit this level back in end June and has being rejected again in early Sept and been trading kind of flat the past 1 week just below this key level. Tesla need to break and stay above 232 before it can go any further, perhaps Fed's rate cut may be the event deciding on this outcome.
I opened $Carvana Co.(CVNA)$ ,CVNA: short additional CVNA shares to dollar cost average on the way up. Up 6.5% so far today on its 6th day rally and continue to make new highs. Might have a technical reversal due to overbought but then, a rally can go longer in bullish momentum.
🌟🌟🌟$Oracle(ORCL)$ shares rose 11.4% on Tuesday as a push to embed AI into its Cloud Service products boosted its first quarter results and helped it to narrow the gap with market leaders. Revenue from its Cloud products rose 21% to USD 5.6 billion in the first quarter while its overall revenue of USD 13.31 billion beats Wall Street Analysts' expectations. Oracle's Cloud products is seen as a less expensive option compared to that of $Microsoft(MSFT)$ and $Amazon.com(AMZN)$ . With the current share price gains, Oracle is set to add a