© Copyright 2024 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.
Expect Market Volatility
www.oneoption.com
The market has been trapped in a range and we have major news pending.
PRE-OPEN MARKET COMMENTS WEDNESDAY – This morning the market will gap up. Don’t chase this move. ADP came in at 152K and that is lighter than the 173K that was expected. JOLTS came in light yesterday and the job market is starting to soften slightly. The “bad news is good news” crowd is supporting the move this morning.
The D1 chart has not changed much in the last two months. We saw some profit taking and the market recovered. It made a marginal new high a couple of weeks ago and we hit resistance. Buyers and sellers are paired off and you should not expect lift off.
ISM services will be released 30 minutes after the open. Last month it fell into contraction territory for the first time since 2022. Weak data points might seem fine on the surface, because the Fed will cut rates. Don’t buy into this line of thinking. We want strong economic growth and we don’t want the Fed to lower rates because activity is slowing. The rate cut celebration won’t last long and institutions will start to worry that the Fed waited too long and that they are too hawkish.
The jobs report Friday should be in the 150 – 175K range based on initial jobless claims the last month. That is a fairly market neutral number. Then the market will wait for the FOMC statement next week.
The SPY has been trapped in a trading range. There is major news pending and we have seen two-sided price action. When a directional move loses its momentum, look for a reversal.
Gaps up have typically been faded. If the retracement into the gap is brief and shallow, a good buy will set up. If the gap starts to fill immediately, watch for a potential gap reversal.
I expect to see nice two-sided movement today and a dull day tomorrow into the jobs report.
Support is at AVWAPQ and resistance is at the all time high.
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.