Rocket Equities & Options Report

By Tommy O’Brien

January 23rd, 2023

The markets are continuing to push to higher in the face of possible slow downs in the data. We have a decent flow of data this week all leading up to the Fed meeting next Tuesday and Wednesday. This week, Tuesday, we get S&P US Manufacturing/Services PMI. Thursday we get preliminary 4th quarter GDP from the Commerce Dept. Economists are looking for GDP to grow at 1.5% seasonally adjusted annual rate in the last 3 months of 2022. We also get jobless claims, durable goods, and new homes sales on Thursday. And Friday we get PCE and Core PCE, the Fed’s preferred inflation gauge, along with pending home sales, and the U Mich. Consumer sentiment.

Lots of companies with earnings over the next 2 weeks. Earnings on the radar this week:

Tuesday before the open: VZ, JNJ, LMT, HAL

Tuesday after the close: MSFT, TXN, COF

Wednesday before the open: BA, T

Wednesday after the close: TSLA, IBM, LRCX, CSX

Thursday after the close: INTC, V,

Friday before the open: AXP, CVX

Stay tuned for updates!

Positions:

We are holding a debit put spread in the SPY from $370-$330 for a net debit (cost) of about $4.60. This is currently trading at around $2.46. We have a big 2 weeks of earnings. We also get a decent flow of economic data, all leading to a fed meeting next week with an announcement Wednesday February 1st. We are going to hold this position for now, as this was an out of the money trade and we gave ourselves some time for a possible larger move. The markets are again bumping into the 0.618.

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