Inline PCE readings should send markets HIGHER on Thursday.
We have issued ONE NEW OPTIONS TRADE for TOMORROW’S market: Underlying Security: SPDR S&P 500 ETF Trust (SPY)
Option Contract: SPY APR 19 2024 540.000 CALL
Trade Action: BUY to OPEN
CBOE Symbol: SPY240419C00540000
Latest Close:$0.49
BEST Price: $0.45
MAX Price: $0.60
Target EXIT: $0.90
Initial STOP: $0.35
**Opening Trades are to be entered as DAY ORDERS ONLY
**Target
EXIT
and
STOP
orders
are to be entered as
GTC
Reasons for our overall POSITIVE leanings:
Hesitant trading bounced index levels in a tight but negative range all session long as wary investors waited stoically for Thursday’s release of the PCE report for January. That hesitancy brought red numbers across the board at the close.The DJIA drifted 0.06% southward and the S&P 500 slipped by 0.17% while the NASDAQ dived down 0.55%
and the Russell 2000 staggered 0.77% lower. 10-year Treasury bond yields skimmed off 4bp to close at 4.27% but still hovered close to 2024 highs. West Texas Intermediate CRUDE OIL spot prices gave up 0.78% to close at $78.29 per barrel as institutional investors re-positioned portfolios prior to month’s end. The Commerce Department is scheduled to release the PCE report just prior to tomorrow/s opening. Consensus expectations among analysts are that Personal Consumption Expenditures (PCE) ‘should’ rise by 0.3%, marking an uptick from December's 0.2% reading. But PCE ‘inflation’ for January is seen slowing to 2.4% after recording December's 2.6% year-over-year increase. It appears that investors have already ‘priced into the markets’ a little ‘hotter’ read for tomorrow. But if that proves to be the case then most of the ‘damage’ to prices has already occurred and there could be a quick turnaround toward higher levels due to a 'reverse' approach to the historic ‘buy on rumor, sell on fact’ anomaly. Our trade selection for tomorrow sees this possibility as a better than average probability. Please limit your exposure though, because we have seen how quickly things can go from good to bad. Don’t be greedy or chase the trade. Set your Target Exit and Protective Stop and ‘get to gettin’ if either bracket is ticked. - RT
Trade Risk: 'Hot' PCE data 'smokes' the markets
Probability for Profit: 65%
River Oaks Capital Corporation, Serene Hills @ Lake Travis Lakeway, Texas 78738
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