By: Tom Gentile
on August 26th, 2022
We have an Answer About what Fed Chair Powell and the Fed Could do to Our Stock Market
Now a Brief Word from our Fed Chair
We are not going to dissect the minimal, but impactful commentary from Fed Chair Powell as there is a ton of this after the commentary and what it means to the markets talk being aired on the financial networks,
And if you missed it, they will be rebroadcasting it, there is much written and to be found on the internet and by now there is a great deal of video that’s been recorded and can be found online as well.
A key takeaway for us is that regardless of everything else that is going on both in our country and abroad financially speaking the Fed seems to have as their top three concerns is inflation, inflation, and inflation
Also note, that Powell used the term, ‘Pain’ in his commentary as in (and we paraphrase here) we will continue to combat inflation and do what we can with the means we have and that could cause some pain in the process.
How much Pain is Coming Our Way in the Financial Markets?
Figure 2 is a 60-day candlestick chart on the SPY with the Fibonacci Retracement tool added on.
The three primary retracement zones (note 50% is not a Fib number, but it is so widely used it is usually included on Fibonacci tools in many software programs) are highlighted by the orange/yellow box.
The 38.2% retracement zone was hit today. This may become a support, but if not the next two price zones lower could be considered areas of support going forward.
App: Toms Option Tools
Market Insight articles may show images of lists of stocks meeting a variety of options parameters like Unusual Call and or Put activity or Expensive IV found on my app Toms Option Tools.
Other times I will have other charts may work to amplify my educational points.
Those options data lists, however, can be found on my app Tom’s Option Tools. Use your device to search up and download this app and get free access to the Morning Reports section of the app.
Other parts of the app are available at a premium subscription rate, but the Morning Reports Lists are yours free.
Stock and options trading has large potential rewards, but also large potential risk.
You must be aware of the risks and be willing to accept them in order to invest in the stock and options market. Do not trade with money you cannot afford to lose.
This is neither an offer to buy/sell/ or recommend a particular stock or option.
Hypothetical or simulated performance results have certain inherent limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not been actually executed, the results may have under or overcompensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated trading programs in general are also subject to the fact that they are designed with hindsight.
No representation is being made that any account will or is likely to achieve profits or losses similar to those shown.
Disclaimer of Warranties and Liabilities Tom Gentile and TomsTradingRoom, LLC including employees, consultants, and editors (“Publisher”) cannot and do not warrant the completeness or accuracy of the content found in our areas, or its usefulness for any particular purpose.
Tom Gentile and TomsTradingRoom, LLC also make no promises that our content or the service itself will be delivered to you uninterrupted, timely, secure, or error-free. Under no circumstances will Tom Gentile and TomsTradingRoom, LLC be liable for direct, indirect, incidental, or any other type of damages resulting from your use or downloading of any content on our site.
This includes, but is in no way limited to, loss or injury caused in whole or in part by our negligence or by anything beyond our control in creating or delivering any portion of Tom Gentile and TomsTradingRoom, LLC.
You are agreeing that you bear responsibility for your own investment research and investment decisions. You also agree that Tom Gentile and TomsTradingRoom, LLC will not be liable for any I, investment decision made, or action taken by you, or others based upon reliance on news, information, or any other material published by Tom Gentile and TomsTradingRoom, LLC.
Tom Gentile and TomsTradingRoom, LLC relies on various sources of information that we believe to be accurate and reliable. However, we make no claims or representations as to the accuracy, completeness, or truth of any material contained on our site.
Tom Gentile and TomsTradingRoom, LLC are educational portals, providing content for educational and informational purposes only. Neither Tom Gentile nor TomsTradingRoom, LLC are a broker/dealer. Investors need a broker to trade stocks and options and must meet certain requirements. All securities, futures, and investments data and ideas are offered to self-directed investors. All prices in USD unless noted otherwise.
A full disclaimer can be found here: http://www.tomgentile.com/legal_disclaimers.html.