Why Thursday’s Inflation Data Could Crush an Already Battered Market

by | Mar 8, 2022 | Options

We’re seeing more selling Tuesday as oil prices threaten record highs not seen since the heydays of the shale boom…

The volatile selling helped push the Dow into correction territory while the Nasdaq officially earned its bear market claws.

Despite the sell-off, New Money Crew strategies have managed to grab some wins…

Our Wiretap Alert Strategy managed to pull in a hat trick of wins including a 35% gain on First Solar (Nasdaq: FSLR), while Weekly Blitz Alerts joined in the fun with an 87.5% win on The Kraft Heinz Co. (Nasdaq: KHC)!

I have to admit, this is the worst tape I’ve seen in years — we’re not seeing directional options flow from the institutions…

Traders should buckle up and get ready for more bear market volatility because we have some major catalysts over the next two weeks…

Oil Bans, Inflation and Bear Market Volatility 

Oil benchmarks continue to flirt with the $130 mark in the lead-up to the U.S. banning Russian oil imports.

Energy production and supply hadn’t fully recovered from pandemic-driven instability before the war broke out…

And cutting out a chunk of raw materials from the markets isn’t helping.

This led to some crazy volatility in energy stocks — Monday saw shares of weekend watchlist member Occidental Petroleum (NYSE: OXY) post 52-week highs… even after dropping 9% between the premarket and the open.

On top of the surging crude prices, we have the Federal Reserve trying to keep a lid on inflation.

Markets will be laser-focused on Thursday’s Consumer Price Index results. If February’s figure comes in above estimates, we could see another sharp round of selling.

Any added instability from bear market volatility could throw a wrench into next week’s Federal Open Market Committee decision on raising interest rates…

If all of the past four weeks’ shenanigans put the committee in a more dovish mood and they walk back the expected 25-basis-point hike, we could see markets bounce.

If that happens, I would look for some of these beaten-down tech names like Apple Inc. (Nasdaq: AAPL) or Advanced Micro Devices Inc. (Nasdaq: AMD) to lead a rally.

In the meantime, options traders need to be careful out there. 

Keep position sizes small and stay nimble through this bear market volatility and take profits as soon as they land in your lap because markets can turn in a hurry — just look at OXY…

P.S. Ever wonder why Wall Street always seems to be one step ahead of the average Joe trader? 

It’s because the big firms have a ton of top-secret trading strategies that give them an edge over everyone else! 

And by the time Joe trader can pull up his accounts, the stock has made its move and is already fading… 

Now, I’m ready to show everyone how I  use that pullback to  my advantage! 

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WRITTEN BY<br>Lance Ippolito

WRITTEN BY
Lance Ippolito

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