Fast Money Blog- 10/14/22
It was another volatile week on Wall Street. Let me explain to you how it all broke down.
On Thursday, October 13th, the U.S. Bureau Of Labor Statistics released the latest Consumer Price Index (CPI) report.
Just so you know, every 30 days the CPI measures the average change in prices of goods and services like: housing, food, medical care, and new and used car sales.
September’s CPI showed that overall inflation declined slightly from an August high of 8.3% to 8.2%. This indicates that inflation is slowing down ever so slightly.
In general, price increases for goods such as used cars and clothing are moderating, but the cost of services, including rent and medical care, have been surging. The Federal Reserve has said that these rising costs are the ones that they have been targeting.
Although the Dow on Thursday closed up more than 800 points, on Friday, October 14th, the Dow was down 400 points at the close of the market.
What does this all mean?
As it stands right now it looks like the battle between the Federal Reserve and shifting stock prices will continue until the Federal Reserve feels that it has significantly slowed down the rate of inflation.
How do you trade this market for income?
The answer is simple. Now is the time to sell 30 day out-of-the money covered calls on all of your stock holdings, while strategically setting up Bear Call Spreads as a form of leverage.
I highly recommend you take my upcoming Advanced Stock & Options Course to learn how to increase your trading profits in this current market.
On Thursday, October 20th, you will be receiving an email invitation to join me.
I look forward to continuing to guide you through this turbulent time.