Rocket Equities & Options Report

By Tommy O’Brien

April 17, 2023

The SPY is up more than 9% from the lows of March 13th to last Friday’s high. That’s a remarkable acceleration that’s been brought about by some form of a crisis and tightening in banking. We are still a long way from 2% inflation, and the market is really ahead of itself that we are going to get a full percentage point of cuts this year.

Now, earnings come into focus. Some of the regional banks are getting hammered today on their numbers. STT (State Street) was down almost 20% at the morning lows and is now down only 12%. Their numbers are also hitting BK (BNY Mellon), down almost 7%. SCHW rebounded from lower prices this morning and is now up about 2.5%.

We are coming into a decent week of earnings, and some of the larger tech companies start reporting next week.

This week we get TSLA, NLFX, T, PG, SLB, TSM, IBM, LVS, MS, UAL, MLT, JNJ, GS, among many others!

Next week we get AMZN, GOOG, MSFT, META, among others. And then AAPL reports May 4th.

We are almost 2 weeks out from the Fed decision on May 3rd.

We have gotten much of the important macro-economic data leading up to the Fed decision next month, so now the focus shifts to earnings, and the outlook.

The dollar is trading higher today and yields are up.

We are right at a critical area in the S&P. The 4,170 area was where we bounced higher from in March of 2022. And since we traded lower through it almost a year ago, it’s been an area of resistance that we only went through once, and when we did the rally lasted less than a week before it traded down almost 20% within the next 2 months from August to October. Markets are calm for now, but we will see where the week leads us. Stay tuned for updates!

Positions:

None active

We bought a SPY April 14th $409 Put for $3.15, which expired worthless.

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