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Big stock market moves are about changes in narrative. Bears are betting the Fed will raise short term rates aggressively to quell inflation. Falling oil prices will undermine that calculus.

Closing out of this underperforming alert.

While there is a possibility the hawkish Fed narrative will continue to drive prices, the expectation of higher rates is not really news at this stage. Pullbacks for the S&P to the 200-day moving average at 4,490 should be considered a buying opportunity.

If we earn tomorrow’s dividend, and if CPB closes above $45 at expiration on May 20, we would earn $1.45 per share on $43.92 at risk, or 3.3%. Over 45 days, that would be an annualized return of 26.8%.

Today’s bull put spread articulates the view that GES, which trades at $22.55, will remain above $22, in which case the trade would produce the maximum profit. The breakeven would be GES at $$21.60 at expiration.

New Buy Alert: Time Is Ticking On This Stock Alert