It’s that time of the month again.

We have a big data week ahead of us because of the consumer price index (CPI) and Federal Open Market Committee (FOMC) announcements.

My plan? I’ll stay light and nimble.

I don’t want to do any large positional trading until at least Thursday or Friday to give the markets time to chop and shake out after the CPI and FOMC releases.

The one trade I really do like (and I get to do this one only eight times per year) is the “Powell Fade.”

You might remember I made a similar trade last month, which caught a 10-point reversal on the SPDR S&P 500 ETF (SPY) the same day.

For this next trade, we want to fade the markets when Powell starts speaking tomorrow at 2:30 p.m. ET.

Click the image below to learn exactly how it works.

YOUR ACTION PLAN

There are not a ton of great setups at the moment, which is to be expected this time of year. However, there is one chart that does catch my eye, and that chart is Lockheed Martin (NYSE: LMT). It’s not quite ready yet, but it’s getting close. Check out the video above for more details, but I’ll be looking to buy the LMT January monthly $490 calls once the daily squeeze sets up and once we get a pullback into the $470 range.

If you want to learn more about how to make several of these trades in real time, I invite you to join The War Room. It’s led by Bryan and Karim – both veteran traders with a variety of trading strategies you can fit into your own practice. They have a 77% win rate in 2022, and right now they’re guaranteeing 252 winning trades for members in their first 12 months of membership.

Click here to join The War Room.

TESTIMONIAL TUESDAY

“In WMT at $2.09, Out at $3.50. 67% winner (in 3 trading days). Thanks BB!”
– alpha-T

“B Back the META Jan ‘24 $30 puts at $0.57 sold at $0.83 31% (in 19 trading days) Thanks Karim, nice call.”
– HeyJT