Profit Pregame

How The Fed’s Latest Decision Could Impact You (And How You Can Prepare for It)

Denied: It’s The End of Big Bank Breaks

On Friday, Federal regulators announced that they won’t extend a Covid relief provision granted to big banks.

Here’s a quick rundown of what that means: Last spring, when the economy and markets were turned upside down by Covid, the Federal Reserve handed what many considered a “free pass” to America’s big banks: It loosened leverage rules that JPMorgan Chase (JPM), Bank of America (BAC) and other large lenders were required to follow.

But after a bid to get that lenience extended, US regulators denied their request, citing that the leverage would be expiring at the end of the month. And this shocked Wall Street, as many hoped the banks would be handed an extension.

Now, many investors worry that this decision will lead to a destabilized spike in bond yield, and in turn, causing some massive waves of volatility throughout the rest of the market.

But here’s the truth: worrying about the future of the market will never do you any favors. So, when it comes to this kind of story, I only have one piece of advice: ignore the noise.

And instead of trying to predict the market’s every move, plan your trade and trade your plan.

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Trading Tip of the Week…

There’s something we can learn from Bitcoin (BTC).

The cryptocurrency’s recent rally higher is a perfect example that everything in the short term is a supply and demand curve between buyers and sellers.

And here’s what that can teach us…

If there are more aggressive buyers, the price climbs higher. But if there are more aggressive sellers, the price drops lower.

Of course, in the long-term, there are valuations and many other factors in play, but these things don’t matter as much in the short term.

In the short-term, the most influential factor is the tug of war between buyers and sellers.

That’s why the first thing I look for in a trade is volume and open interest, to see whether the stock is being bought or being sold. And by doing so, it allows me to find easy setups that will deliver profits quickly.

And that’s why I trade options instead of following the old buy and hold. Because volatility is an options trader’s friend – and there’s never been a better time to cash in on the volatile market moves for some cold hard cash.

The earnings report that has caught my eye…

We’ve got more earnings reports incoming.

But don’t bother sifting through all those numbers, there’s only one earnings report that you should be paying attention to this week, and it’s this:

Riot Blockchain, Inc. (RIOT).

This company is slated to release earnings on March 24 – and the entire market is holding their breath to see what they reveal. Now, the expectation is that company will deliver a year-over-year increase in earnings on higher revenues.

Here’s a closer look:

RIOT is expected to post a quarterly loss of $0.08 per share in its upcoming report, representing a year-over-year change of +20%.

Revenues are expected to be $3.6 million, up 200% from the year-ago quarter.

Now half bad, right?

But still – as we know here at Profit Pregame, even the most confident of estimates can go awry, so I’ll be watching this one closely. If this company hits the forecast that the market has set, I believe we’ll see the stock move higher on the news.

And in turn, this could offer us a lucrative profit opportunity. So, with that said, be sure to keep a close eye on this blockchain name, and I’ll be sure to keep you updated.

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