EB Daily Market Report - Monday, June 12, 2023

Dear Members.

An abbreviated report today as Tom Bowley prepares for tonight's "Option Max Pain" webinar that will begin at 7:30 pm EST. 

Room Instructions: The room will open 30 minutes in advance. Click here to join the session. The webinar will be recorded for those unable to attend live.

The market continues to power forward with both the S&P and NASDAQ hitting levels not seen since April of 2022. These moves are coming just before tomorrow's Consumer Price Index (CPI) report followed by the Fed's rate announcement scheduled for 2:00 pm EST on Wednesday.

The strong moves today shows the bulls remain in control and now the question is, can these gains be sustained? Right now we're seeing a tremendous imbalance between option calls and puts - everyone is betting on the long side here - which is going to be the topic of discussion during tonight's webinar. The bears will say that the market is too overbought which is a reasonable argument. But when a bull market is in full swing, the market - and individual stocks - can stay overbought for extended periods of time. So in the very near term, tomorrow's CPI report and Wednesday's Fed rate announcement could take on more meaning than usual. In the meantime, we hope you are able to join us tonight for what will be a lively and informative session!

At your service,

John Hopkins