Rocket040523 Rocket Equities & Options Report By Tommy O’Brien April 5, 2023 What’s most amazing right now is the pull back in yields over the last few weeks, especially on the short end of the curve. The 2-year yield as now approaching 3.7%, and that’s from above 5% within the last month. This market right now is in complete divergence with the Fed, which has said they will keep rates higher for longer to tame generational inflation. We got ADP payrolls today at 145,000 added for March, just below the 210,000 that had been expected. Wages are still rising at...

We are going short this market with a $400 SPY put, expiring Friday. These are high risk trades as if the market moves against us we can lose our entire investment so only risk what you are willing to lose as our defined risk is the entire cost of the trade, and 100% losses are likely to occur often when trading options with only a couple days until expiration. We have traded just above the 4,040 area on the ES, which has been an area of resistance.  Buy the SPY $400 Put that expires Friday March 31st. This is currently trading...

  Rocket Equities & Options Report By Tommy O’Brien Mar 28, 2023 The banking crises may have calmed for now, but the underlying dynamics of the banking sector will be a constant headwind for markets and the Fed going forward. I do not see the Fed cutting like the market currently prices in this year, unless something really changes quickly in this economy crushing profits and causing unemployment to start rising dramatically. And I just don’t see this banking scare causing enough tightening to squash inflation, especially within the pockets of the economy where inflation has persisted. Employees are steal...

.618's are everywhere in this market! The ES traded right to the .618 and then gave it all the way back! 70 points up from the close last night, and 70 points down from the high made this morning, and it's not even 3pm ET.  We are selling our options position. We are up almost 100% since yesterday. Sell to close the $400 SPY Put. It is trading at about $7.75. We got into it at about $4.00 yesterday. No reason to risk it when this market is going to give us plenty of chances in both directions.     ...

Markets have popped this morning, yet I see nothing that has changed since yesterday when this market traded down 100+ points in the ES following the Fed announcement and press conference. We are holding our $400 SPY puts for now, and this is still a high risk trade. We are right at the .382 bounce from yesterday's sell off. I can see this market even getting up to the .618, which would bring the ES up to about 4,032, before selling off rapidly today or tomorrow. All the pressure is still to the downside.  Stay tuned for updates!   Disclaimer:...