Stocks selloff continues

Today was not the best day for stock investors.
S+P closed down 1.73%
The DOW down 1.01%
And the NASDAQ got pummeled down 2.55%

The NASDAQ today had 82 brand new 52 WK HI’s, and then it had 153 brand new 52 WK LO’s……… Ouch……..

The market acted the previous 2 trading days that it was expecting a bad jobs report, but it obviously didn’t factor in this mornings numbers to be such a miss.

Lets go back to the S+P 500 for a minute. It didn’t just fall through this mornings Support, it sank like it was a rock falling into a lake. Looking for a bottom it found it’s way to 5,400 where it settled.
5,400 is a very important number right now, it is now the official area of Support and also where the Options begin picking up incredible traction.

And todays Monthly Puts went haywire. The buying was tremendous today. What that suggests is that investors are anticipating more downturn. We’ve been saying for a week now that SEPT is the hardest trading month of the year, and that it’s the last 2 weeks that are historically known to take the biggest hits.

The chart I’m posting here is the SPY, or the ETF of the S+P 500. It’s a 2 year chart with weekly bars… You can see there where we could be heading.

The Options however go even deeper, they aren’t stopping at 525, ( The SPY is at 540 today ) they gained incredible strength today down at 520. Let’s hope that they are wrong and that a portion of those are being used as hedges. That is a topic of it’s own beyond the depth of todays discussion.

If you want to hear about how we are navigating this current market with Options we will be meeting on ZOOM next Tuesday SEPT 10, 2024 415pm EST. It’s free and I’ll be posting the link via this newsletter that day.

Side note:
I’m very excited to announce that starting in about 5 weeks ( that’s the expected date ) theoptionscoach.net will be more than the daily newsletters with a site that only supports past content. In about 5 weeks we will begin the process of having a full-on interactive website with lots of links, training videos and other info on it.
The timing of this couldn’t be any better as we prepare to launch the Premium service.

The Premium service’s main focus will be the employment of Options strategies for swing trading, otherwise known as “trend trading.” It will be broke down into “laymen’s terms” and simple to use. There will be a glossary to assist anyone with verbiage or terminology.

The strategies we will be looking at are ones that are not only income producing but have built in “defined risk” That’s an actual Options term, with stocks you can only set a “STOP” which you always should, but you can still have “slippage” in any unfortunate event or a bad earnings miss. With Options your risk is “defined” before you even enter the position.

Hope that you guys like the new name, it’s funky for me to see it…. lol… 😄 But it exemplifies where we are going from here.

I’ll be back Sunday with a fresh scan and some thoughts on the markets movements.

Invest wisely, live charitably and be well
Brother Bill