Commentary from the Fed Shook the Markets this Week 

Tom Gentile

Posted in
Technical Analysis

By: Tom Gentile
April 8th, 2022

2 mins read

Markets Direction While the Fed Tries to Fight Inflation

The markets have experienced a nice upward, bullish run since the early March lows.

That run has stalled and even peaked out starting 8-trade days ago and as of yet hasn’t given indication of a bottom for this pullback.

So much commentary from the Fed / Fed officials about how aggressive they are willing to be to fight inflation has caused the stall and pullback of this recent bullish run. There are many folks out there on the financial news networks talking about the latest run being one of a bear market rally.

They are even running polls on the financial news networks asking what percentage chance people give for us experiencing a recession.

I am not calling for one, meaning I won’t say it will happen, but I wouldn’t be surprised to see the markets pull back some more. But the markets have been pretty resilient, and our bullish options positions highlighted here have seen gains.

My how the market can swing up and down.

Money Calendar Bearish Trading Pattern

Here is a rare Money Calendar bearish pattern on a retailer. It’s always a good idea to have a mix of bullish and bearish items working so here is a bearish setup and trade idea.

Kohl’s Corporation (NYSE: KSS)

KSS is a retail department store chain. It’s industry is classified as consumer cyclical.

Charts 4 8 22

I say this is a rare bearish opportunity and rare because there are only three bearish patterns with a start date of today.  Only KSS meets the criteria of having a trade length between 20-30 days.

It is why this made the cut.

Options Strategies One can Consider

When one expects a price in a stock to decline and they aren’t comfortable shorting the stock, one can consider going long call or Buying to Open a long call option on it.

Of course, I’d want you t discuss that strategy and any other bearish option strategies with your broker as to the suitability of that strategy for your portfolio.

App: Toms Option Tools

Toms Option Tools scan the markets for bullish and bearish trade opportunities using our proprietary scans and strategy algorithms. TTR Darknet finds bullish entries based on triple stack channel collisions. Money Calendar identifies seasonal patterns with at least 90% accuracy looking back 10 years. Weekly Cash Clock finds short term opportunities that last a week on average. Microcurrency Trader applies Darknet technology and moving averages to cryptocurrencies. Velocity Trader utilizes volume spike and Velocity indicators on custom stock lists. Quantum Scripts scans the markets for momentum acceleration signals and employs Quantum noise filters. Optimal Trader finds directional pre-earnings opportunities that are optimized for entry date, stock movement, and volatility surge. My Trades tracks the profit/loss of your trades, displays stock charts and risk graphs, creates new trades, and edits existing trades. Morning Report provides top 10 option rankings in 6 categories each day.


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