Where to Focus: The Ups and Downs of Stock Market Averages

Tom Gentile

Posted in
Big Picture

By: Tom Gentile
March 25th, 2022

2 mins read

The markets have endured despite all that’s going on in the world. The two biggest issues it seems are the Russia Ukraine war and on the home front the prospects of multiple more short-term interest rate hikes which could be of the half-basis point variety starting as early as May has caused the market to trade in a back-and-forth manner: up one day, down the next.

The trends, higher and lower haven’t been the smoothest and volatility is still something options traders have to deal with. Implied Volatility of options isn’t as high as it has been, but there are still situations where the short-term IV is a bit elevated and one still has to be aware of that when deciding which options to pursue.

Here is the Money Calendar image for this week:

Money Calendar 03 24 22

The markets have traded in a choppy manner with one day trading lower only to see buyers step back in take the markets higher.

With Money Calendar I am not worried about the chop so much so long as at then end of all that back and forth the security moves in the direction the data shows it has done 9 or 10 of the past 10 years.

The top performing sector as of late has been Oil and Energy. In fact, I have written about the seasonally bullish pattern in Oil and Energy that takes place between mid-Feb. to mid-July for the past handful of years.

Whether you are looking at scans in my online suite of options analysis tools, www.tomsoptiontools.com such as Money Calendar, Darknet or the Morning Reports lists if an oil stock is on a list and it catches your eye it might be worth researching a bit more or talking with your brokers about the suitability for the security or an options trade on it in your portfolio.  

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.

Sign Up Now for Free Education!