By: Tom Gentile
on April 8th, 2022
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.
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
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.