**Kevin Warsh’s Nomination** Kevin Warsh, who has changed his views on interest rates and asset holdings, has been nominated by President Donald Trump to chair the Federal Reserve. This led to a rise in the US Dollar Index and mixed movements in US Treasury yields—longer yields increased, while shorter ones decreased. Major market indices like the Dow Jones, NASDAQ, and S&P 500 all dropped by over half a percentage point. Gold prices also fell by more than 7% due to market uncertainties. Despite strong financial results, both Apple and SoFi felt the effects of the overall market reaction to economic events. The market seems to be overlooking good news from individual companies. Instead, it’s focusing on the new Federal Reserve leadership. Kevin Warsh’s nomination in late 2025 caused uncertainty, which recent economic data has confirmed. The latest Consumer Price Index (CPI) report showed inflation steady at 3.5%, giving more reason for hawkish remarks from Warsh. **Focus on the Federal Reserve** This attention on the Fed is driving volatility, creating opportunities for derivative traders. The CBOE Volatility Index (VIX), known as the market’s fear gauge, has jumped from around 14 to over 19 in the past few weeks. Traders should consider strategies that take advantage of these price fluctuations, as the market appears more responsive to Fed news than to company earnings. For Apple, the strong Q4 2025 results seem far away. The stock hasn’t been able to reach the $260 resistance level. With its Relative Strength Index still weak, there’s more downside risk as long as macro concerns persist. Buying puts with a strike price near the $244 support level could serve as a good hedge against a broader market decline. SoFi’s situation is even clearer. The technical breakdown we anticipated in late 2025 has occurred. The stock fell below its 200-day moving average and is now trading around $21. Traders might consider the $20.50 level as a near-term target, and purchasing puts or bear put spreads would be a smart move to align with this downward trend. In currency and bond markets, the trend sparked by Warsh’s nomination continues. The U.S. Dollar Index (DXY) remains robust, especially after the latest jobs report showed solid wage growth, raising inflation concerns. This suggests that call options on dollar-positive ETFs could be profitable, while put options on gold and other commodities may also be worthwhile. Create your live VT Markets account and start trading now.

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