Rate-Cut Fever
Hello All,
It’s been a rather quiet week in respect to economic data / event risks, but following this past Friday’s selloff, indices have posted quite the rebound off the lows with Small-caps currently leading the way, +265bps on the week, whereas the remaining indices are all pretty much trading inline & up around 100bps on the week.
In terms of why Small-caps are outperforming by such a wide margin, its generally derived from the dovish commentary / rate-cut fever by recent Fed members as odds for a September cut have now surged to 91.4% (Was just 38% this past week following FOMC) which has helped encourage the rotation factor within the indices.
Earlier on in ‘24, a series we had started was ‘Educational Pieces’ with each including a wide variety of topics, some even suggested by you all & we’ve finally decided to release Part Trois.
Nevertheless, for those whom may have missed the first educational piece along with the subset of topics included:
General background / knowledge on all option strategies
In-depth talk on risk / reversals & how to go about expressing / utilizing them
Options Structuring
When to used naked calls / puts vs. spreads
Choosing expiration dates
Identifying key pivots / supports / resistance zones
General briefing on stock gaps
What to look for in regards to fundamentals
Implementing fundamental / macro / technicals into a trade
Hedging
Creating risk/reward setups
Taking profits / managing losses
Overall Process
Book recommendations
I include a link here to the original.
And given the amount of positive feedback we had received on the first educational piece & how helpful it was for many, we decided to release Part Deux earlier on in ‘25 & for those who may have missed, a link to Educational Piece Part: Deux can be found here.
And then FINALLY, a link to the last part of the series, Part Trois (for now), can be found here.
Psychology is the silent driver of performance & your edge often comes not from knowing more but from managing yourself better.
