Posted in
Daily Report
By: Tom Gentile
on March 30th, 2023
The Initial Jobless Claims Number and 2022 4th Qtr. GDP Did NOT Derail Yesterday’s Bullish Move in the Stock Market
This article is going to show you another perspective to take when analyzing the Morning Reports Lists so you can consider an option trade or at least which stock or ETF to consider researching more option trades on versus others.
It can take all day to write about financial experts views on will the Fed continue to raise rates or scale back. There is a ton of back and forth being written between the Fed will execute a soft landing or they will see this thing (the economy) crater.
That isn’t the point of what we are discussing today, though it is worth noting the Initial Jobless Claims number that came out today saw an increase over the last period, totaling 198,000, (up 7,000) and a bit higher than the 195,000 estimate.
Last year 2022’s 4th quarter GDP showed the economy grew at an annualized rate of 2.6%. This fell just a bit below the expected 2.7%.
Symmetrical Triangle Pattern Holding Up Today
This week it was pointed out the SPY broke out above the resistance line of a symmetrical triangle formation on its chart.
There is such a thing known as a false bar or false candle breakout (and its inverse) where a security can break out above a resistance, horizontal or slanted for a day and then fall right back into the range that preceded it.
Where one could see that breakout for a day and get bullish and start initiating all kinds of bullish option trades, the situation where it falls back in to the prior range could mean the breakout will not last and fail after that one day.
Whether you take the economic numbers as a bullish or bearish sign, the fact is the numbers did not create a vibe where the bears came back to push prices lower and cause a failed breakout.
It doesn’t mean prices can’t or won’t decline it just means right now the breakout had a follow through day and closed for a 2nd consecutive day above the resistance line of the triangle.
An aggressive approach to a breakout is to take action the day of or the day after the breakout. The more conservative approach is to give it a day or two more to see if the security closes above the resistance and if it does for 2 or 3 more trading days then act on bullish option trades.
Morning Reports Lists
When looking over the mornings reports lists you can look for opportunities over any of the categories listed.
There are time where a security lands on more than one list. This may be the candidate to lean on for more options research or consideration of the option from the lists.
Bank of America, (NYSE: BAC) is on three separate lists today.
This data table is always under the Morning Reports Lists it just hasn’t been highlighted in an educational piece like this until now (as far as we can remember).
The three lists BAC is on are:
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.
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