Stock Market-Fed-Rates to Kill Rally? Energy-Metals-China Turn? Bank Earnings? Read More!

July 8 2023 Option Professor Opinions & Observations

Hello Everyone! We got a Jobs Report Friday that initially was viewed as a turn down in the Labor Market BUT by the end of the day, traders realized the WAGES are UP, Hours Worked UP and 3.6% rate is still at 50 YEAR LOWS! The conclusion is the Fed has more to do and sans a “event”, the Rates will stay elevated.

The next realization by traders was that valuations on AAPL & MSFT as examples, had gone from the 20’s to the 30’s P/E’s since the beginning of 2023. Along with many others, this mean that this rally was FUELED by MULTIPLE EXPANSION. In a world of 5%+ Fed Funds rate, the VALUATION should be CONTRACTING toward 15 or 16 not 20 or 30! This week we start EARNINGS SEASON and companies better put up or shut up! This week, Friday, we start with BANK EARNINGS with JPM, C, First Republic and others the following week we get GS, BAC, and MS to name a few. We will see how the REIONALS are doing with many having to give away their profit center of Net Interest Income (translation the bank pays you NO INTEREST on your money and EARNS INTEREST for themselves). Not a bad scheme if you can get away with it; however many have to pay MARKET RATES to retain nervous depositors. No loan Growth?

The world may be CHANGING so keep your eyes open. Energy prices are benefiting from DEMAND VS SUPPLIES in that Saudi & Russia are cutting and inventories appear LOW. Energy futures are in a condition called backwardation which translated meaning they pay more for immediate delivery than deferred suggesting tight supplies. INFRASTRUCTURE may be a key word in the months ahead and if so FCX ect., INDUSTRIAL stocks and metals may go on a RUN. Gold & Silver have been SOLD off BUT if CPI runs LOW this week (expected to as last year’s HIGH numbers is removed), Yield ease, Dollar drops, they could run. China has been a busy bee with restrictions on 2 key metals, Gallium used for Radar Solar panels, TV/phone displays and compound chips. Also, Germanium used in Fiber optics, night vison goggles, and space exploration/satellites. CHINA also cam down with BIG fines on the tech giants BABA, TECHY, PDD, and BIDU and this was viewed as a sort of culmination as China big caps (FXI) SPIKED up on the news.

BUT, all these markets have SIGNIFICANT technical resistance ABOVE current price, this week promising.

SPEAKING of TECHNICAL SIGNALS/ The Option Professor has put together 3 IMPORTANT Opinions Pieces

You Should Get the Information-How To Make Money with RSI Divergence, Moving Averages, Reversion

These are the SAME Indicators The Option Professor used to Trade OVER $32 Million in Stocks in 1 YEAR! This INCLUDES a 1on 1 ONLINE Session with The Option Professor- EXPLAINS How to Trade It & Options!

How to choose strike prices/expirations dates, what strategies/when, how to adjust positions and more.

If you are EXPERIENCED-this can IMPROVE Your Decisions. NEWCOMER- You NEED to Learn How it Works

Call 702-873-8038, Talk DIRECTLY to The Option Professor or Go to Info.

JULY has started off with INCREASED VOLATILITY so Now is the Time To Get This Information

Why Us? Option Professor-Trained at Option Institute-Advanced Options Training-Educated THOUSANDS We apply the 3 Signals To Stocks, Options, Energy, Gold, Food, Dollar, Crypto, China-Europe-Mexico-India

NO Annual Fees! NO Monthly Fees! It’s Smart. It’s Fair. Check it Out! You Should Have Done It Already.


The Option Professor

REMEMBER All investing involves risk of loss and it is not right for everyone. CONSULT YOUR BROKERAGE FIRM to determine your own suitability and risk tolerance. Past performance is not indicative of future results. Information and opinions are provided for informational purposes only. It is NOT advice.

Jim Kenney

Click Here to Leave a Comment Below 0 comments

Leave a Reply: