Weekly Raid #67 - The Inflation Re-Introduction Act
Happy Hump day (sorry this joke never gets old to me)
News of the day
We have another long list of news for today, they seem to be getting longer as the week goes on.
Building Permits and Housing starts will definitely be two of the more important releases today. Given all the housing and rate talk in the news lately, I can see these really moving the market on release.
In addition, we have a bunch of Fed speakers today, probably going to come on and talk about how the Fed is well positioned to deal with economic issues as they arise, that we have the tools to fund multiple wars if necessary, and a whole bunch of other shit that is irrelevant to their actual mandate which is to keep inflation at 2%. Regardless, when they speak the market usually listens, so trade accordingly.
Personal Finance Tip of the Day
The “Inflation Reduction Act” and “Bidenomics” seem to be going well. A now-viral video of someone comparing Costco prices to even just a year ago shows how out of control inflation really is. And I can already hear someone say “Well it’s just food”, but that’s not true. Obviously, everyone is feeling a serious pinch with what things are starting to cost, so here are a few tips I have learned from days gone by to help find some better deals on food.
Try your local farmers market. Most places have them, even New York City before it turned into a cess pool had a market a few days a week. While the meat may be more expensive the veggies are usually better quality and cheaper.
Wholesale Clubs like Costco and BJ’s are great places to buy dry goods. Toilet paper, Paper towels, canned goods, and even frozen goods are all much cheaper. While your total cost will end up being higher than your local grocery store, once you start the cycle you will see your cost per item fall. (just stay disciplined, those stores make it easy to buy needless crap.)
Alternative Grocery stores are another great option. When I was a kid we used to hit 3 stores on Sunday mornings after church and shop the deals at each one. It kept our food prices a little better and it became a game to see where something was the cheapest. A+ to my parents for somehow making being broke an actual fun game.
None of these are particularly revolutionary, but I have noticed it’s the small things that most people forget to remember. Everyone probably read those and went “Well yeah of course”, but how many actually implement them?
The other thing to do is to create a little additional income. This is always easier said than done, but with all these new cool AI tools there are some simple ways to add even $100 a month to your bottom line. If you want to know some additional ways you can email me here or reach out to me on Twitter @tradingviking
On to the charts of the day. I did not get to spend a ton of time in front of the screens yesterday, but here are some things I found interesting.
First up is these post from Tier1Apha
Today, over 54% of $SPX options volume was from 0DTE contracts, which is right around record levels.
Keep in mind that around 85% of this volume is being driven by the dealers themselves, who are hedging their own positions without ever engaging the futures market.
This is important for a few reasons. First, this is not just the SPX options that see this phenomenon. Second, all that liquidity everyone loves so much is not actual positioning which has made options trading significantly harder in the last few years.
Another thing I noticed yesterday was a lot of Bearish flow came through on some of the equities and ETFs. They weren’t particularly large trades but there are a pretty high number of them.
Finally today’s watch list.
ENVX saw some interesting options flow yesterday with some huge calls and puts coming across the tape in what looks to be a spread. The best flow I saw was some 25 calls that expire next quarter.
Next up is TSLA. This one should be obvious with earnings this afternoon. Today could be an options seller’s dream with elevated IV making options premiums extra juicy.
Finally looking at LMT today. Earnings came out yesterday and I think that we are in a good place to potentially see a trade emerge on the chart. We probed higher on earnings and are sitting right under a small LVN.
As always trade well and Good Luck
As always this is all for educational purposes only. You are solely responsible for your trades as I am for mine. Nothing in here should be construed as financial advice, but only educational content about the markets and my particular trading style.