Posted in
Daily Report
By: Tom Gentile
on March 7th, 2023
A look at the ETF’s of the three major indices today post day 1 of 2 days of Fed Chair Powell testimony.
The reason these same three ETF charts are shown today is to emphasize what could be deemed a new trading range for the big three indices.
A trading range is where there is a consistent price support level and a consistent price resistance level, usually more clearly seen if the range is sideways/horizontal in nature.
Fed Chair Testimony Before the Senate Today 2023-03-07
What the market got from Fed Chair Powell today was a hawkish toned testimony that spoke to inflation still being a high-risk scenario and to combat that from happening they may have to accelerate the pace of their rate hikes.
The phrase we were hearing today was, ‘higher for longer’ pertaining to what may have to be their game plan.
A concern is the Fed recently raised rates a 1/4 of a basis point, which gave indication things are improving enough they were able to feel confident in dropping the amount in which they raise rates down from a 1/2 basis point.
Today’s testimony hints at the prospect they may have to move back to a 1/2 point hike and that spooked the markets.
Fed Chair Powell testifies before the House tomorrow and by law his opening statement has to mirror the one he used before the Senate today.
Their doesn’t seem to be an expectation that anything in the question and answer time spent before House is going to change the genesis of what was said and testified today which may bring more selling or folks, Bulls and Bears don’t act too decisively tomorrow.
There is a chance no new info tomorrow may give bulls a chance to say the worst is behind us for now, we know what we are facing and we can get back into the market with things being on sale.
We won’t really know which scenario will play out, but what is shown in the chart images of the three ETF’s today is that we now have a trading range to monitor.
Any existing positions need to be monitored to their stop loss plans you should have in place.
Then, for new actions to take, I would feel better initiating bullish options trades with a breach of resistance or with new bearish positions I would need to see a breach of support.
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.
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.