A hot CPI print caused the worst stock market down day since 2020. The number came in at 8.3% from the expected decrease to 8.1%. The stock market tumbled hard in a flash crash and closed even lower, sending the NDX down over 5%, with tech stocks leading the way as #AAPL dropped 5.3%, #NVDA over 7.5%, and #TSLA over 3%. This pull back isn't surprising given the massive amount of shorts in the market. However, the market seems to have just recalibrated from the gains made Thursday-Monday. The interested thing is that now the market has priced in a 20% chance of a Fed rate hike to 1.0% bps, which could leave some room for gains after the Fed meeting if the rate hike stays at the expected .75%bps .
Trading: I closed all the short sides of my credit spreads yesterday leaving me with the long sides of the trade, essentially giving me a free roll if the market bounces after the rout. I added some sold puts as premiums were extremely over priced given the #VIX's strong push over 16% yesterday.
#AAPL gave up the hot run following the event release, dropping to that 153 level. #AAPL continues to be added to portfolio positions and if the downswing continues into 2023, price points could be quite juicy to keep adding to my overlying long positions .
#CMG didn't trade in par with the market, dropping only over 2%, which is kind of a standard swing on the volatile stock. I added on a short credit spread yesterday and if the stock rebounds into the end of the week , I am free rolling on the long calls I had on my initial spread.
#TSLA showed some resilience throughout most the of trading day before finally trading in par with the market later in the day dropping to the 191 price point. The stock had more bullish news , and the stock is trading below VWAP.