One Week to Go for Congress to Resolve Their Debt Concern

Tom Gentile

Posted in
Big Picture

By: Tom Gentile
May 26th, 2023

2 mins read

The Debt Crisis or potential debt crisis looming over congress and our economy has been a much-discussed topic.  According to almost everything that has been written the deadline for them to come to a resolution, temporary or permanent is June 1, next Thursday.

The Treasury Secretary is on record for saying if congress does not at least raise the debt ceiling their could be catastrophic results to our economy.

Consequences that are not favorable should they fail to do so are potential mass unemployment, payment failures, and broad economic weakness to name a few.

The non-agreement to do so and the fact they haven’t made an agreement of what to do is a weight around the neck of the markets and is likely attributing to the markets trading significantly higher.

Granted the SPY is up off its lows from mid- to early October 2022, but anytime there is an article or news that congress is far apart in coming to an agreement it puts pressure on the markets.

As soon as something is written or a news announcement comes they are getting closer to a deal, the markets has a bullish day – like today thus far.

One of the benefits of options trading is one can make a trade based on an anticipated move higher or lower without having to fork over the amount of capital to actually buy (or short) a stock.

Options Activity Prior to Next Week’s Pending Resolution of Congress Resolving its Debt Issue

Here is a look at the Morning Reports Lists that show activity for calls and puts.

Image 98
Image 99
Image 100

The anticipation is congress resolves the issue in a positive way and the markets at least on that news trades higher.  Should they not resolve the issue by next Thursday and the debt ratings are tagged as negative, and they default on what they owe that could see the markets tailspin down.

The above lists gives one an idea of where options activity is prior to next week.  At least research what the security’s for these options look like and work with your brokers in determining if any one of these look suitable for your account or not.

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.


Disclaimers

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.

Sign Up Now for Free Education!