Markets Sell Off After the Fed Announcement – What Now?

Tom Gentile

Posted in
Big Picture

By: Tom Gentile
January 26th, 2022

2 mins read

Did the Fed Surprise the Markets?

The expectation was the Fed would not raise rates today. And they didn’t, so no surprise there.

Expectations of the first quarter point hike possibly happening in March was re iterated to day so no surprise there.

What was a surprise is the prospect of how many rate hikes are possible this year. It seems there is a possibility now for them to  increase from 3-4 to up as much as 5 of them. The words Chairman Powell used was they have “quite a bit of room” to raise interest rates before it would hurt the labor market.

Where to Consider Putting Your Money to Work in the Markets if you See More Selling to Come

The choice of trading options in a bullish or bearish fashion faces us all. The markets were trading higher on the day for the third day in a row up until after the Fed decision and then they all reversed course and traded lower on the day.

If you have conviction for the markets trading lower look at a list of Unusually High Put Option activity and it just so happens my app HAS that list.

Unusually High Put Volume 01-26-22
Unusually High Put Volume 01 26 22

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.