AMZN could hit 1600 this week as the FANGS get back on the bull train.
I focused on S&P daytrading last week and bought a measly 4 QQQ June 172 puts on Friday mainly because, as is the case with most deep out of the money options, they were thinly traded; also, my limit bids were too low.
I am looking forward to building a larger QQQ put position but will wait until Wednesday or Thursday, unless there are big moves earlier in the week.
Unless a major geopolitical or US political even, I am looking for a big UP week.
FED Chair Powell will not disappoint the bulls.
"The entire financial world will be watching new Federal Reserve boss Jerome Powell like a hawk this week when he testifies in Congress, but Powell himself will be watching the Fed’s preferred inflation measure for signs of trouble.
Powell heads to Capitol Hill on Tuesday for the first of two rounds of questions with U.S. lawmakers. And investors really just want to know one thing: Is the Fed prepared to raise interest rates four times in 2018 instead of three as the central bank has signaled.
Also Read: Fed on track for 3 rate hikes in 2018, but 4? No sign in report to Congress
Don’t expect a cautious Powell, in his first real public test as chairman, to drop any obvious clues.
“We expect Mr. Powell to stick closely to the pre-existing monetary policy script established by [former Chairwoman] Janet Yellen, but markets are going to be hyper-sensitive to his tone and to any deviations from what has been said before, no matter how small,” said economist Joshua Shapiro of MFR Inc.
In other words, if Powell lets down his guard, offers a rosier-than-expected view of the U.S. economy, or sounds worried about inflation, investors will surely take note and react accordingly.
The reaction since late January has been a stock-market SPX, +1.60% selloff. Equity investors are worried the Fed will raise interest rates aggressively, siphoning more money from stocks and into bonds.
Bond investors are also jittery, though. The Fed would only speed up rate increases if inflation accelerated, an outcome that would reduce the value of existing assets with lower yields.
Enter the PCE, the Fed’s preferred measure of inflation. Or officially, the personal consumption expenditure index. The January report will be issued Thursday.
Except for a few brief flareups, the PCE has lingered well below 2% since 2009 — a remarkable stretch of low inflation."