Softening Fed fears should send prices HIGHER on Thursday.
We have issued ONE NEW OPTIONS TRADE for TOMORROW’S market: Underlying Security: Energy Select Sector SPDR Fund (XLE) Option Contract: XLE Oct 20 2023 93.000 CALL
Trade Action: BUY to OPEN
CBOE Symbol: XLE231020C00093000
Latest Close:$0.99
BEST Price: $0.95
MAX Price: $1.05 Target EXIT: $1.45
Initial STOP: $0.70
**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:
There was a little give and take tug-o-war early in the session but a decision to work together helped boost index levels going into the close. Closing figures were in the green but short of the daily highs. Sparking today’s upward tilt was ‘soft’ economic data that could give the Federal Reserve a reason to pause interest rate tweaks a little longer and that whiff of possibilities gave optimistic buyers all that they needed to bid markets higher. Second-quarter GDP readings were revised significantly lower, to 1.7% on a quarterly annualized basis. Current dollar GDP increased 4.1% factored annually to total approximately $268.6 Billion in the second quarter to a level of $26.80 Trillion, which shows a downward revision of $36.3 billion
from the previous estimate, a factor that eases some of the pressure on the Fed to stave off inflation. In addition, there are reports that the Fed has issued private warnings to lenders with assets between $100 billion and $250 billion in a bid to 'tighten supervision' in an effort to prevent regional bank failures as reported in past recent history. The NASDAQ came in first place with a 0.54% gain as the Russell 2000 ballooned 0.40% and the S&P 500 added 0.38% while the DOW drifted 0.11% higher. US CRUDE OIL prices rose 0.72% to $81.71 per barrel. The yield on 10-year Treasuries fell one basis point to 4.11%. The world's most important commodity is once again in focus as drone attacks inside Russia, damage from Hurricane Idalia, and probable supply interruptions loom large. Tonight’s foray into the Energy Sector looks primed to perform well short term. Measure your involvement and don’t chase the price. Set your target exits and protective stops and cash out whether you hit a gusher or dry hole. - RT
Trade Risk: Buyer fatigue sets in
Probability for Profit: 75%
River Oaks Capital Corporation, Serene Hills @ Lake Travis Lakeway, Texas 78738
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