This sector will crash next
With oil and Treasury yields down, the stock market won't do too badly. The problem is that the market is now viewing this plunge in terms of recession. Lower oil prices and lower inflation are good news for stocks. But if there is a simultaneous recession, no one will dare to buy stocks at the bottom.
So falling inflation + recession, let's put the oil sector. A few alternatives:
There's a Senate hearing today with Federal Reserve Chairman Jerome Powell. Lawmakers are expected to question Mr. Powell about reducing inflation and the risk of a recession it could lead to. I don't think it's going to help. I'm sure the old man still won't be able to answer any substantive questions by hemming and hawing.
In addition to the sharp drop in crude oil, there is another positive factor for the market, the G7 summit over the weekend. Media sources say Biden is unlikely to make a decision before the summit on whether to lift tariffs on Chinese products.
That means there is bound to be a solution to the trade issue at the G7 summit, which will be good news for stocks.
Sell put:
Same as yesterday, updated royalty price and annualized yield
| Ticker symbol | Annualized income | Expiration date | strike price | Premium |
| $BRK.B 20220708 250.0 PUT$ | 9% | 2022/7/8 | 250 | 0.96 |
| $ATVI 20220715 72.5 PUT$ | 26% | 2022/7/15 | 72.5 | 0.7 |
| $VMW 20220715 115.0 PUT$ | 14% | 2022/7/15 | 115 | 2.4 |
| $SIMO 20220715 80.0 PUT$ | 20% | 2022/7/15 | 80 | 1.13 |
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Huathuat
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