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.
Not sure where to start?
Think of a trading plan like a road map. A trading plan provides you with clear turn-by-turn directions headed straight to your destination.
The best traders use their plans to record exactly where they are, where they want to go, and how they’ll get there.
When I started as a floor trader at the CBOE, I created a trading plan so I could trade fast and know exactly how to react to any situation. The best part? This plan was so easy to follow… and despite what Wall Street might tell you, your strategy doesn’t have to be complex to be effective.
And in Project 303 research service, I reveal my CBOE professional-level trading plan and how it helped me become a multimillionaire before age 30 in two years.
And the best part?
This is a strategy that can work for you.
Click here to learn more.
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.