Trade Findings and Adjustments 09-08-22
Keve Bybee – keve@hurleyinvestments.com
- Market seems to be having a short bounce on a support price level, but there is no real positive news that looks to push markets higher.
- We are also in the bearish months of the year
- Market look looks to test the 50 day moving average where we will look to add something like a SPY Bear Put spread to give us more protection on the way down.
- Why SPY Bear Put? The spread will make it a bit cheaper as these options are very expensive.
BAC, JPM
- Possibly taking protection off
- Article on CNBC from Hugh Son and Michael Bloom highlighting how banks should do well in rising interest rate environment IF the economy avoids a recession
- “Loan balances for the industry are heading for a 2.6% quarter-over-quarter increase… With higher rates should support more net interest revenue growth.”
- “Loan losses on credit cards and other products are still low”
- Analysts say 20% upside on banks
- 30% upside on BAC, JPM, GS
