Not only do we close the books on the 3rd quarter...
...But also the worst September since 2008.
And that means that this type of market doesn't happen often.
Floor traders would say this type of market action a "tough tape" to trade.
That's because it's so jittery, it makes it hard for bears or bulls to feel confident.
We saw markets rally after Bank of England reversed course on it's aggressive rate hikes.
Because if they didn't, the UK's financial system would've crashed.
With the Bank of England pivot, the market is putting pressure on Fed Chairman Jerome Powell to back off his hawkish stance.
Even though it was another challenging week, hopefully you were able to make a little money on META trade.
After that strong broad market close on Wednesday, we typically see follow through the following day.
But that didn't happen and why it's a tough tape for most most experienced.
As I mentioned last week on navigating a bear market.
It doesn't mean you're not going to make money, it's harder to make money.
Which is why it's important we stay calm and focused.
It's okay to scale back, because risk is elevated with fast and larger swings.
The CBOE Volatility Index (VIX) closed this week at 31.
That’s 3 points lower from last week, but indicates we will continue to see those 100 point swings in S&P 500.
Now let’s talk shop.
Here’s a recap of what we did this week.
Buy-to-open META Sept. 30, 2022, $145/$148 call spread
Sell-to-close 50% META Sept. 30, 2022, $145/$148 call spread
Sell-to-close all of META Sept. 30, 2022, $145/$148 call spread
Right now, we’re holding:
- VTRS Oct 21, 2022, $10 call
Have a great weekend and it's time to enjoy a ice cold spicy margarita - TGIF!
Joshua M. Belanger