yesterday it seemed that no one had noticed the start of the New Earnings Seasons. What’s going on?
The attention was focused on the stimulus package negotiations and the US election next month.
Another attention grabber was Apple’s new product launch. This article reviews the main highlights of this trading week.
Let’s start with Apple: yesterday Apple’s moves were guided by that market sentiment despite its High Speed product release. These events do not claim the same imagination when they were presented by former founder Steve Jobs. Yesterday’s event was again a disappointment.
Sentiment was helped also by Apple rebounding after a weak performance earlier in the week. In fact 5G capability can’t be totally exploited in the immediate future, an upgrade in 5G carriers networks is necessary.
Now the US stocks: yesterday the US stock market opened higher as a result of positive earnings from banks. We must consider that – as a result of the Fed’s near zero interest rate – income from core lending businesses are dropping. This situation is expected to continue until inflation starts to climb, and especially once it reaches the 2% target.
The Vix has gained some points but is still on his low level around 25.
The increased volatility is also typical for the election period in October and November.
From an Options point of view: it is a good strategy to take advantage of the VIX rise by using a vertical Debit spread on SPY.
Thinking about options but not sure yet? There are a couple of ways to move forward before committing to the course or educational signal service. Here is how you can stay in touch:
If you are ready to move forward, then you can choose from:
Marco Doni – ecs.OPTIONS expert and CNBC contributor
The articles are not intended to give any advice on how to invest money, they are just for educational purposes.