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.
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.