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Like to Gamble? Check Out This Degenerate Earnings Trade Idea in DKNG

by | Oct 31, 2022 | Market Outlook, Options, Stocks

I don’t see anything moving the markets in a meaningful way until after Wednesday, when the latest Federal Open Market Committee meets again to decide on the next interest rate hike. 

On this morning’s edition of Crush the Open — join our Telegram channel here to be notified when we’re about to go live! — fellow open crusher Lance Ippolito said he’s getting bullish, but I’m not… yet. 

Let me explain…

Crush the Open

I think the market’s going to sell off on the Fed news, but then rally — like crazy hard. The Fed is very likely to hike another 75 basis points. This is one of the most obvious 0.75% hikes ever… Goldman Sachs just said rates are going to at least 5% before the Fed is done, and I believe that to be the case as well. So another 75 points will get us to a range of 3.75% to 4%. 

And I see the market selling off on that news, but I’m buying the dip. Here’s why…

Fed Chair Jerome Powell is going to speak about doomsday and more pain because they don’t want the market up. They want rates high and stocks down.

Last time he did that, the market crashed and stayed down for about two weeks. I think it will crash again, but then we’ll have a massive, face-ripping rally — either before the close, or overnight.

In the simplest terms, if there’s any Fed-induced selling, I’m a buyer.* 

Looking at the chart of the SPDR S&P 500 ETF Trust (NYSEArca: SPY), I see a 50-50 scenario. We could go back to August highs — in which case I’m a seller at those levels…

An SPY stock chart (Crush the Open)

But I’d love to see a Fed-induced sell-off of 3% to 5% to buy into, but a 2% to 3% dip is much more likely. 

And there are going to be stocks in certain sectors that are going to rip. There’s the potential of a $54 trillion tidal wave that could be coming — I’ll talk more about that in my event at 1 p.m. EDT on Tuesday — sign up here! It’s free to attend.

Check out Crush the Open up top, and be sure to tune in at 9 a.m. EDT every Monday! We covered several trade ideas, including Lance’s degenerate gambler trade idea* for DraftKings Inc. (Nasdaq: DKNG), which reports on Friday before the open.

We also covered several other trade ideas, including my top low-hanging fruit trade right now!

Are there any topics you’d like to see me cover or questions you’d like answered? Send me an email at jeff@joyofthetrade.com. And be sure to stay ahead of the markets by subscribing to our YouTube channel and our Instagram page for all of the latest! Don’t forget to like, subscribe and leave us a comment!

You can also join my free Telegram channel, where I share market insights real time throughout the week, articles, videos and more!

P.S. This Could Cause a MASSIVE Swing in the Stock Market

If there’s ever a live briefing you need to see, it’s this one…

I’m going live at 1 p.m. EDT on Tuesday, Nov. 1, to talk about what could be the biggest market shift of the year — the November midterm elections.

The result could be a massive $54-trillion market tidal wave.

And you DO NOT want to be left behind.

Sign Up to Watch This Live Event — at No Cost

*This is for informational and educational purposes only. There is inherent risk in trading, so trade at your own risk. 

WRITTEN BY<br>Jeff Zananiri

WRITTEN BY
Jeff Zananiri

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