Waited for 100 mins for the 13% gain with SPX over a choppy price action day. The market is waiting for Jerome Powell to give a clearer direction after the explosive unemployment rate last Friday.
Stocks continued to give back some of this year’s gains, with traders waiting to see if Jerome Powell will dampen the bullish reaction to his recent remarks as the Federal Reserve keeps its firm grip on policy.
As equities came off overbought levels, Treasuries took a hit following the best start to a year for cross-asset returns since 1987. The Fed’s boss will have an opportunity in an interview Tuesday to remind Wall Street that bets on rate cuts in 2023 are probably misplaced at this stage.
Federal Reserve Bank of Atlanta President Raphael Bostic said January’s strong jobs report raises the possibility that the central bank will need to increase interest rates to a higher peak than policymakers had previously expected.
If a stronger-than-expected economy persists, “It’ll probably mean we have to do a little more work,” Bostic told Bloomberg News in a phone interview on Monday. “And I would expect that that would translate into us raising interest rates more than I have projected right now.”
A need to hold above 405 to stay within channel flow. Looking at calls above 412 or puts below 408 on Tuesday. No trigger, no trade.
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