By: Tom Gentile
on November 10th, 2022
The Consumer Price Index (CPI) for October was a good number. What was good about it? The fact that it WASN’T as good as expected. Wait, what?
The CPI saw a 7.7% increase over last year and 0.4% increase over the prior month. Both of these numbers are better than Wall Street expected. Economists were calling for a 7.9% annual rise and 0.5% monthly gain.
Last month Fed Chairman Powell informed the markets a pivot or policy shift isn’t guaranteed,
Investors were able to disregard that, at least for a day today as this CPI data once again fueled data the Fed could ease the pace of their monetary tightening plan.
Across the Board Stock Buying
Readers of this Daily Market Insight education knows we have been encouraging folks to focus on sectors they feel will benefit with earnings (good or bad) and the mid-term elections that are still not yet finalized to ascertain what sectors will respond and in what direction based on results of all that.
Today, one didn’t have to try that hard to find a sector that is outperforming it seems as buying was prevalent across the board with all 11 sector SPDR ETF’s showing gains for the day.
The leading sector on the day was Tech, Ticker XLK.
One can click on the ticker in the sector SPDR website and bring up the list of holdings for XLK and do further research on that list with your broker(s) to ascertain which one you all feel most confident for higher prices.
Of course, if one feels this move today can’t be sustained and the markets, this sector or individual components could see some profit taking and peel back in share price there is the option, pardon the pun of looking for bearish option trade ideas.
We are more in favor of operating based on the ‘Trend is your Friend’ ideology and looking for stocks that we feel have further upside and research bullish option ideas on those.
Major Index Gains for the Day
- The Dow closed up 1.201.43 points or 3.70%
- The NADAQ closed up 760.97 points or 7.35%
- The S&P500 closed up 207.80 points or 5.54%
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.