A Short But Busy Week In The Markets

by | May 28, 2024

A Short But Busy Week In The Markets

I hope everyone had a fantastic Memorial Day weekend. I got to spend it with my family. It was a much-needed change of pace for my clan and we got to use the new van some this weekend, which was awesome!

Last week we saw a wealth of data and comments come from the Fed, with several Fed chairs speaking up and giving their opinions on the status of the economy.

We also saw several of our trades perform incredibly well and make fantastic exits. Last week we saw an Automated Option Win, a Jump Trades win, and 5 trades we gave away for free that absolutely crushed it!

You see, when the Fed speaks, Wall Street listens — for better or worse.

A report showed that US consumer confidence unexpectedly rose in May and that recession expectations increased as well — everything seems to be trying to find a balance.  

We also saw a speech from Fed Bank of Minneapolis President Neel Kashkari, who said the policy stance is restrictive, but officials haven’t entirely ruled out additional rate hikes.

But despite this, the markets, and especially our trades are doing great.

Last week and the week prior, we saw huge swings in the overall markets. But recent announcements and comments from the Fed have created moves in both directions.

Yet, overall these moves have been swinging to the upside significantly despite much of the market’s initial reaction being bearish.

This culminated in the S&P 500, Dow, and Nasdaq to close at all-time highs last week.

As I said, although the Feds announcements cause a lot of volatility, these swings are ultimately favoring the upside — people want a reason to be bullish.

Much of these initial reactions OR the later follow-through have worked for our Automated Options winners because we just need that one move during the lifespan of our trade. We have now won all of our first four Automated Options Trades!

Obviously, there are no guarantees and past performance doesn’t mean future results, but it’s great to see the strategy play out in real markets exactly as we planned it!

Our fifth trade is now underway, and there are a lot of Fed-related items and releases coming out this week that hopefully will shoot us into our fifth win.

Here’s everything the Fed is doing this week:

  • Fed’s Beige Book, on Wednesday
  • Fed’s John Williams speaks, on Wednesday
  • US initial jobless claims, GDP, wholesale inventories, on Thursday
  • Fed’s John Williams and Lorie Logan speak, on Thursday
  • US consumer income, spending, Personal Consumption Expenditures (PCE) index, on Friday
  • Fed’s Raphael Bostic speaks, on Friday

As we can see, it’s going to be a busy week which not only means some potential waves for our current trades, but also for our next opportunity that will kick off on Friday.

I’m planning on trading that opportunity live for all Automated Options members. If you want to learn about the strategy with a chance to join me for that trade, register for this briefing.

“It may be a short week, but it looks to be a busy one,” said Chris Larkin at E*Trade from Morgan Stanley. “With last week’s FOMC minutes sounding a hawkish tone, traders will be eager to see cool data that could make it easier for the Fed to cut rates.”

On Friday, we have the release of the Personal Consumption Expenditures (PCE) index, which is the Federal Reserve’s favorite price gauge — so the end of this week is certainly going to be moving.

That’s why I am hosting a live webinar tomorrow @ 1pm to fill everyone in on the details of Automated Options, plus looking to trade Friday’s signal LIVE!

Register for that briefing here.

I look forward to seeing you there!

— Nate Tucci

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