Friday, October 15, 2021

An Energy Crisis and Earnings Week. How Will Markets React?

 
October 15, 2021
 
Don't Get Caught Offsides with This EXTREME Move
Are traders prepared for the "extreme" move?

CNBC just announced that the market is primed "to be pretty extreme in either direction."

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Oil Rips, Market Dips as Energy Crisis Looms. How Will Markets React?
Expect the bears to be out in full force as the Energy Crisis — yes, we're using capital letters now — plays out in earnest.

Prices for West Texas Intermediate (WTI) crude oil blew past $81 to make a new seven-year high. And the ensuing media freakout over inflationary pressures will weigh on a market already headed into monthly options expiry — along with other key economic reports.

Headlines Monday morning reflected as much, with Bloomberg showing seven related to the theme.

And what's more, we still have a ton of economic data coming out...
How Will It Play Out?
 
Why This Week's Economic Data Is Critical as Big Banks Report Earnings
Front and center on my radar this week… It's earnings season, and a couple of big banks are reporting soon!

It's important to watch the banks because they're a good proxy for the economy. So let's break down the biggest bank of them all, JPMorgan…

JPM is trading close to an all-time record high. It was down a bit Monday, but that's OK. JPMorgan reported Wednesday morning, and as more things get moving in the economy, the more money is flowing. All things being equal, banks' profits go up when there's more money circulating.

And that's why they're a good proxy for the economy.
What to Watch Today
 
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Rick M.



Swing Trading attempts to capture gains in a stock (or any financial instrument) within an overnight hold to several weeks. Swing traders use technical analysis to look for stocks with short-term price momentum. These traders may utilize the fundamental or intrinsic value of stocks in addition to analyzing the price trends and patterns.
 
 
 
 
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