Here’s what you should consider as big banks are letting us know how they are doing in light of rising inflation and interest rates.
A slew of banks are due to release their earnings report and also provide insight on what they expect to happen through the rest of the year. Meanwhile markets are having a major identity crisis as the pitch and roll in a sideways range looking for something to provide direction.
The broader trend is still down but we see desperate grasps for support finding some traction. Tech, for instance is refusing to give up the fight and inspite of gapping down at the open the last couple days it has really push hard to recover the drops.
These daily swings can really create confusion. The good news is that that confusion can offer some good trades is you are tuned in with the right strategies.
As these earnings report roll in today, the markets will get wild. Traders will be scrambling to determine if this news is already priced in to a dropping market or if it could fall even further.
When things get even more unpredictable than usual in the markets it becomes an ideal environment for using the options strategy that offers gains and controls the risk. By selecting the right strike price and knowing what your premium is you can lock in the risk to what you are willing to accept. Unlike your 401k which seems like it is going to fall through the floor, this lets you find potential upside with only the risk you want to take on.
If you want to see a quick video where Wendy Kirkland explains how you can spot the highest potential trades AND lock in only the risk you are willing to take, click here.
Keep learning and trade wisely,
John Boyer
Editor
Market Wealth Daily
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