Posted in
Newsletter
By: Tom Gentile
on February 10th, 2021
What the Fed Said…
Really nothing new.
It seems Fed Chair Powell is still very concerned about the employment picture. He spoke at the Economic Club of New York, Powell saying the employment picture is a “long way” from where it needs to be.
Interest rates (low interest rates) seem to be in place and look to remain there for a while. Stimulus talks continue in Washington and it is believed additional relief will continue to support equities.
All that said… the Dow joined in on the ‘All-time high’ action by closing higher by 63-points today.
The NASDAQ and S&P 500 both hit all-time highs on an intraday basis but couldn’t hold on to those highs on a closing basis.
The markets may feel a bit toppy and if one watches the volume it may not seem like these prices can hold, but that has been said for a while and the market’s resilience continues.
The best I can say to you all is monitor your option trades valuations.
Things to consider. Consider a trailing a stop or move one’s stop up to break even if profitable or consider moving the stop to a value that if the option hits that and stops you out it leaves you with a profit or managed loss you can live with.
Of course, I am not a Registered Investment Advisor and am NOT giving you advice, but rather considerations that I as an option trader have to do myself.
You must work with your broker on what is best for you and your account.
Tom Gentile
C1P Chief 1-Percenter