Rocket Equities & Options Report

By Tommy O’Brien

June 5, 2023

The Fed has indicated that they will pause/skip at next week’s meeting, and the market loves the idea that are approaching the level where they have reached a restrictive rate and they will now let the lag catch up, or at least that is their plan. Jobs crushed estimates on Friday as usual, and we get CPI this week which is expected to show that inflation is still no where near the 2% target that the Fed keeps reiterating.

We also have the Treasury kicking off about $1 trillion in sales today as they look to replenish their balance sheets.

AAPL is trading up $2 this morning pre-market, right at all-time highs as their WWDC kicks off today with the announcement of their mixed reality headset, which will retail for about $3,000.

The VIX has plummeted to a level of about 15, indicating how little risk premium is priced into this market as we approach the first fed meeting without a hike in almost 15 months.

I imagine that next Wednesday when the Fed decides to pause/skip, it will be followed by a hawkish statement. The Fed is aware that their job is not done, but is going to pause for one meeting to see how the lag plays out over the summer. Do not be surprised if inflation does not drop as fast as everyone is hoping and the Fed needs to hike again in the coming months.

I will have a video update out at about 10:30am ET this morning going further in depth into this market and how we plan to trade it going forward.

Stay tuned for updates!

Positions:

None active

SIGN UP FOR TIM ORD'S LIVE WEBINAR SERIES, JUNE 8TH & 15TH! ORD WILL REVEAL HIS WINNING STRATEGIES FOR THE SPX AND GOLD ON THE RESPECTIVE DATES! 

Disclaimer: Trading in securities such as stocks, options, indexes, currencies, and futures involve risk and should not be undertaken without due diligence and serious independent study. Options, stocks, currencies, and futures trading, involve substantial risk. Subscribers may carry out their trading based on what they learn from “Rocket Equities & Options” however all risks of potential financial losses are the customer’s responsibility. TFNN, Corp. will be in no way liable for financial losses resulting from trading decisions based on this newsletter. Past performance is no guarantee of future results. Reproduction in whole, or in part, is not permitted without prior written consent. Copyright 2023 all rights reserved.