Stocks Rebounded From Last Week’s Decline But Can It Lasts? 🧐
Taking both calls at open and puts from profit taking SPX on Monday. ⚠️ Trading tips: looking at SPY calls above 415.7 and puts below 413.85 on Tuesday. Expect market to chop with premium burned leading to FOMC announcement on Wednesday at 2 pm.
US stocks are on track to start the new week on an upbeat note as more earnings and the Federal Reserve’s rate decision loom. The oversold levels of the market could attract buying if the other catalysts prove to be benign.
An analyst suggested that there could be light at the end of the tunnel for the market. “Given how bearish the financial markets have become, and how nearly all the metrics associated with oversold conditions are pointing to an impending ‘relief’ or ‘oversold’ rally, markets appear poised for a bounce,” said Quincy Krosby, chief global strategist at LPL Financial.
But most investors and traders have given up on the hopes of a higher chance of the market turning and delivering a solid finish to the year, the analyst said. “Markets have a way of dismissing consensus estimates when you least expect it,” he said, implying that stocks could push higher.
The Fed is widely expected to announce a pause decision on Wednesday, with the futures market pricing in a 98.6% probability of a status quo stance. The market participants will likely focus on the post-meeting policy statement and Fed Chair Jerome Powell’s commentary in the following press conference.
Earnings continue to drop in, with some key reports, including from Apple, Inc. (NASDAQ:AAPL) and chipmakers Qualcomm, Inc. (NASDAQ:QCOM) and Advanced Micro Devices, Inc. (NASDAQ:AMD), likely to take center stage.
Tug of war between bulls & bears
The Fed meeting headlines the week’s economic events, although a few other data also have the potential to move markets. The Federal Open Market Committee – the monetary-policy setting committee of the Fed, will meet for a two-day meeting beginning on Tuesday. The central bank will announce interest rates at 2 pm on Wednesday, followed by a press briefing by Powell at 2:30 pm. The Fed wouldn’t be releasing its summary of economic projections this time around.
Among the other market-moving reports of the week are the October non-farm payrolls report due on Friday, the third-quarter employment cost report due on Tuesday, given its implication for inflation, and the Institute of Supply Management’s manufacturing and non-manufacturing activity reports for October.
Also on investors’ radar would be the Conference Board’s consumer confidence report due on Tuesday, S&P Global’s final manufacturing and services sector activity data, and the results of the Chicago ISM’s regional business activity data.
Buy call
Buy put
Buy put
Buy call
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yesterdays bounce was just over selling dead cat bounce
selling down will resume , too many talking heads doing Tom Lee imitation equals more selling ahead
christmas rally is now a mirage only
dont bottom fish Tom Lee is wrong, the markets will swan dive down like an eagle
It’s just a small rebound not reversion
Market and Stock Prices are still a massive balloon.
Be patient the market will go up eventually.