The Window For A Significant Stock Market Decline Is Open

Summary

  • The stock market may see a sizable pullback as hedging flows from options expiration pass and economic data suggests fewer rate cuts than expected.
  • Retail sales data shows improvement, while inflation remains sticky, indicating a stronger economy and higher rates.
  • Volatility may expand as VIX options expiration passes, leading to potential movement above 14 and impacting mega-cap tech stocks.
  • Looking for a helping hand in the market? Members of Reading The Markets get exclusive ideas and guidance to navigate any climate. Learn More »

Rain And Thunderstorm In Dramatic Sky

RomoloTavani/iStock via Getty Images

The stock market has stalled since the end of 2023. Now, there's a window of opportunity for the stock market to see a sizable pullback as the hedging flows from options expiration this Friday pass and economic data

Reading The Markets is designed to provide members with a better understanding of the stock market and to provide stock ideas. Just like the free articles you have grown to love reading.

To Find Out More Visit Our Home Page

This article was written by

43.27K Followers

Michael Kramer is the founder of Mott Capital, and is a long-only investor who focuses on macro themes and studies trends and options activities to identify and assess entry and exit points for investments in his long-term focused thematic growth strategy. He is a former buy-side trader, analyst, and portfolio manager with 30 years of experience tracking market technicals, fundamentals, and options.

Michael Kramer leads the investing group Reading the Markets, where he helps a devoted following of members to better understand what is driving trading and where the market is likely heading, both the short and long-term. Features of the investing group include: daily written commentary and videos analyzing the driving factors behind price action; general macro trend education to help members make well-informed decisions based on market conditions, interest rates, currency movements and how they all interact; chat for questions and community dialogue; and regular Zoom videos sessions to discuss current ideas and answer questions. The level of access RTM subscribers and the expertise of the source are unprecedented given that the subscription price is a fraction of similar technical coaching and mentoring services.

Learn more.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of AAPL, MSFT, AMZN either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Charts used with the permission of Bloomberg Finance L.P. This report contains independent commentary to be used for informational and educational purposes only. Michael Kramer is a member and investment adviser representative with Mott Capital Management. Mr. Kramer is not affiliated with this company and does not serve on the board of any related company that issued this stock. All opinions and analyses presented by Michael Kramer in this analysis or market report are solely Michael Kramer's views. Readers should not treat any opinion, viewpoint, or prediction expressed by Michael Kramer as a specific solicitation or recommendation to buy or sell a particular security or follow a particular strategy. Michael Kramer's analyses are based upon information and independent research that he considers reliable, but neither Michael Kramer nor Mott Capital Management guarantees its completeness or accuracy, and it should not be relied upon as such. Michael Kramer is not under any obligation to update or correct any information presented in his analyses. Mr. Kramer's statements, guidance, and opinions are subject to change without notice. Past performance is not indicative of future results. Neither Michael Kramer nor Mott Capital Management guarantees any specific outcome or profit. You should be aware of the real risk of loss in following any strategy or investment commentary presented in this analysis. Strategies or investments discussed may fluctuate in price or value. Investments or strategies mentioned in this analysis may not be suitable for you. This material does not consider your particular investment objectives, financial situation, or needs and is not intended as a recommendation appropriate for you. You must make an independent decision regarding investments or strategies in this analysis. Upon request, the advisor will provide a list of all recommendations made during the past twelve months. Before acting on information in this analysis, you should consider whether it is suitable for your circumstances and strongly consider seeking advice from your own financial or investment adviser to determine the suitability of any investment.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Recommended For You

About SP500 Ticker

SymbolLast Price% Chg
52 Week High
52 Week Low
Open
Prev. Close
Compare to Peers

More on SP500

Related Stocks

SymbolLast Price% Chg
SP500
--
NDX
--
DJI
--
SPX
--