Posted in
Big Picture
By: Tom Gentile
on April 1st, 2022
Late Day Selling in the Markets Ends a Terrible 1st Quarter for Stocks
Today was the last day of trade for the 1st quarter of 2022.
The US Stock market ended the 1st quarter in a volatile fashion, especially over the last hour of trade today.
Much of this may be attributed to professional money managers making end of quarter decisions to the portfolios they manage.
The Dow, S&P 500 and NASDASAQ all dropped 1.5% each.
The Worst 1st Quarter for US Equities in 2 years
2 years ago, was the start of the COVID pandemic. The drop started in the first quarter of 2020 and that was the worst performing over the past two year until the first quarter this year.
The Dow and S&P 500 closed down 4.6% and 4.9%, respectively. The Nasdaq lost 9%.
I am glad the education, options trading training and my software www.tomsoptiontools.com has still provide people may opportunities to still see profitable opportunities despite the poor performance of the three major averages.
What will Biden’s Decision on Oil Mean for the Markets
Another situation took place today and that was President Biden announcing the US is going to tap in to the US’s Private Petroleum Reserve to pump out 1 million barrels of oil per day over the next 6 months.
This caused the rice in oil to drop today.
Take a look at my chart from my tools on the ETF I use to analyze my overall perspective and analysis on the Oil sector, the United States Oil Fund, LP (NYSE: USO).
Keep in mind that my research says we are in a seasonally bullish period for the Energy and Oil sector until mid-July.
I have a special report written called the 2022 Energy and Oil Opportunity Report. Here’s the PDF:
The chart shows a period of consolidation which is forming a symmetrical triangle pattern formation.
A technical analysis approach to this pattern is to see a breakout or breakdown of the triangle and then anticipate a move further in the direction of the break.
The amount of expected price move can be assessed as the distance of the widest points of the triangle added to the price of a security from the price of the break out or subtracted from the price of the security from the price of the break down.
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.
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