© Copyright 2025 eOption, a division of Regal Securities, Inc., Member
FINRA/
SIPC |
Important Disclosures
950 Milwaukee Ave., Ste. 102 | Glenview, IL 60025
The information on this web site is for discussion and information purposes only. All accounts accepted at the discretion of eOption which accepts customer orders only on an unsolicited basis, and does not make any recommendations regarding any security or securities product with the possible exception of orders executed by our full service bond desk. Nothing contained herein should be considered as an offer to buy or sell any security or securities product. Online trading has inherent risks due to loss of online services or delays from system performance, risk parameters, market conditions, and erroneous or unavailable market data.
FINRA BrokerCheck reports for Regal Securities and its investment professionals are available at www.finra.org/brokercheck.
Options Disclosure: Options involve risk and are not suitable for all investors. Prior to trading options, you must be approved for options trading and read the Characteristics and Risks of Standardized Options. A copy may also be requested via email at support@eoption.com or via mail to eOption, 950 Milwaukee Ave., Ste. 102, Glenview, IL 60025. Online trading has inherent risks due to loss of online services or delays from system performance, risk parameters, market conditions, and erroneous or unavailable market data.
eOption Commissions: Broker-assisted orders are an additional $15. Option strategies involve multiple purchases; therefore your transaction costs may be significant for option strategy trades. A commission rate of $2.00 for equities and $3.99 + $.10/contract for options, per execution, applies to orders entered and filled by eOption's Auto Trade Desk and does not apply to customers who enter their trades directly into the eOption platform and are not utilizing the Auto Trade desk.
Broker Comparison: The competitor rates from published websites were verified on 05/25/2023 and are believed to be accurate, but not guaranteed. Commissions are subject to change without notice. At some firms, commissions may not reflect broker-assisted fees, orders over 1,000 shares, penny stock trades, OTCBB, pink sheet stocks or foreign stock orders. Firms may offer reduced commissions if additional criteria are met.
Blog & Commentary: eOption is neither affiliated with, sponsored by, nor endorses commentary and the opinions expressed are solely their own. Content is provided for educational and informational purposes only and eOption cannot attest to its accuracy or completeness. No information provided has been endorsed by eOption.com and does not constitute a recommendation by eOption to buy or sell a particular investment. You are solely responsible for your own investment decisions, and eOption makes no investment recommendations and does not provide financial, tax or legal advice.
No Earnings Impact
www.oneoption.com
The initial round of earnings have not moved the needle.
PRE-OPEN MARKET COMMENTS THURSDAY – Monday the market shot higher and that move lasted two hours. It was not able to advance Tuesday and profit taking drove the market right back down to where it started the week.
What does all of this mean? The price action is all driven by trading programs and long term investors are waiting for a catalyst to break us out of the trading range set on October 10th. The market is entering a seasonally bullish period and I believe the breakout will come on the upside. Asset Managers want to be long heading into year end.
Earnings season has not had much of a market impact so far, but we are just getting started. INTC will report after the close today. This is a fairly light news day. Next week we will hear from a much larger group of stocks.
The CPI will be released tomorrow and we will get an inflation read. Fed Fund Futures are pricing in a 97% chance for a 25 basis point rate cut next week. The subprime auto lender bankruptcies have lead to banks tapping the Fed’s repo facility and that is a sign of strained liquidity. Nothing too outrageous, but it is another reason for them to cut. The government shut down will weigh on economic growth and that should influence them consider two cuts this year.
There is no progress on the shutdown. If the continuing resolution is passed, it could be the catalyst that pushes the market through the all-time high.
Trade talks with China are taking place. The rhetoric on both sides has been heated, but both countries need each other. Talk is cheap and and Trump has taken a hard line and then postponed new tariffs. The initial news sparks selling and then the market rebounds. Traders are getting numb to the rhetoric and it doesn’t carry the same punch that it did six months ago.
New sanctions are being placed on Russia and the EU is joining in. Their financial system is perilously close to collapse. The war is costing a lot of money and Ukraine has destroyed many refineries. Their interest rates are at 17% and that will only worsen with the new sanctions.
Day traders can consider trading both sides as long as we are trapped in this trading range. Know that this is all program driven and that there will not be many sustained moves. We have seen some heavy selling pressure in the “high fliers” recently. Be nimble and don’t overstay your welcome.
The best strategy is to patiently wait for dips to run their course. Instead of trying to time and catch these moves lower, monitor strong stocks that have relative strength. Once support is established you can buy with confidence. If you get trapped in a long, you can hold it overnight because you have the long term trend supporting you. The same is not true for bearish day trades gone bad. It is risky to hold those overnight.
From a swing trading standpoint, I am waiting for earnings reactions. I want stocks that gap higher through all resistance and that move higher after a few days. That is a sign that the earnings were well received and that buyers are aggressive.
Support is at AVWAPQ and it was tested yesterday. Resistance is at the all-time high. Overseas markets were up slightly overnight. This is a fairly dull news cycle so a quiet day is likely. Know that the price action is program driven and that we are trapped in a range.
Content is provided by OneOption, LLC, which has no affiliation with Regal Securities, Inc. (“Regal”) This commentary is provided for information purposes only, and is not a recommendation, offer or solicitation by Regal to buy or sell securities or to adopt any investment strategy. Regal has not participated in the creation of the OneOption content and does not directly or indirectly endorse the content. Any reliance on this material is at the sole discretion of the reader.