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Turnaround Tuesday: Can Powell & Co. Keep the Bulls Happy?

by | Mar 15, 2022 | Options

Turnaround Tuesday is living up to its name this week!

You have to love this market… one whiff of positive sentiment and the buy programs come flooding in.

At the top of the list of frustrations in markets like this is that the biggest market catalysts of any given week — this being the week of March 14, 2022 — are going to be headline-diven. 

The indexes rallied Tuesday on hopes that maybe the conflict in Ukraine will come to an end sooner than later.

Oil dropped below $100 per barrel for the first time in two weeks on the news, prompting a hefty sell-off in energy stocks…

And just like we discussed last week, Tuesday’s stock bounce is being led by tech names.

New Money Crew Weekend Watchlist member Microsoft Corp. (Nasdaq: MSFT) rose over 3% on the day while chipmakers Advanced Micro Devices Inc. (Nasdaq: AMD) and NVIDIA Corp. (Nasdaq: NVDA) bounced more than 6%.

Green days like these are a great feeling, but I shouldn’t have to remind traders that these aren’t markets we want to fall in love with.

All it took was a couple of headlines to spark this rally, and it can all come crashing down with the next big story or tweet.

But even though headlines are blowing the markets around, traders still need to know the top market catalyst events are on the calendar for the week of March 14, 2022… 

Top Market Catalysts the Week of March 14, 2022: FOMC, Quarterly Expiration

Outside of new developments in Eastern Europe, the Federal Reserve and options expiration are among the top market catalysts for the week of March 14.

Wall Street will be watching Washington closely as the Federal Reserve concludes its Federal Open Market Committee meeting on Wednesday, when we’ll get our next clue on where interest rates are heading.

Inflation continued to make new 40-year highs through February, according to this past week’s Consumer Price Index data. 

While institutional traders expect the Fed will stay committed to its 25-basis-point hike at the meeting, the big question is how the war will affect future rate increases…

Anything that could be taken as dovish could help markets maintain their momentum as we approach Friday’s quarterly options expiry — also known as “Quad Witching.” Quarterly expirations tend to see heavy trading volume as institutions sell and rotate their positions.

Of course, any degenerates looking to isolate earnings events like FedEx Corp. (NYSE: FDX) on Thursday should know that volatility is soaring… and so are options premiums… 

So if you have to trade these whipsaw markets, keep your position sizes small, be nimble and aggressively take profits. 

P.S. Do hedge funds place risky bets and cross their fingers?

Of course not…

They want consistent profits.

That’s why they take advantage of a little-known market “error,” that flips the odds in their favor

After learning this trick on Wall Street, I perfected a formula anyone can use to do this exact same trick…

From their cell phone!

Learn the Point30 Formula

WRITTEN BY<br>Lance Ippolito

Lance Ippolito

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