But, whew, what a week in the market.
For last 8 weeks the broad market rallied off those June lows.
Yet, we're in a bear market and last week, we started to see that rally lose steam.
Today's tape action was ugly with non-stop selling and closing on the lows, leaving the S&P 500 down 3.38%.
That type of tape action indicates, liquidation.
Today's sell-off was triggered on Jerome Powell's aggressive tone on fighting inflation.
In his prepared speech, he mentioned former FOMC Chairman Paul Volker.
Volker, is known for the aggressive approach to raising rates to curb inflation in the 80's.
After today, fear has come back into the markets.
We are going to find many who are going to panic sell as inflation eats away at their lifestyle.
In my predication, we are going to retest those June lows.
But I do think we will see more two sided markets vs. the multi-month plunge we saw the first 6 months.
But I've shown, sticking to our strategy has paid off big-time – as we’ve booked a lot of triple-digit winners.
Now, the last two weeks, we haven't done much because I haven't seen Hot Money too active.
But that changed this week after I've continued to see Hot Money pile bank into the oil & gas trades.
The CBOE Volatility Index (VIX) which closed at 25.
That’s 4 point decrease from last week, but indicates we will continue to see 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 the SLB Sept 16, 2022, $42/$47 call spread
Right now, we’re holding:
- SLB Sept 16, 2022, $42/$47 call spread
Have a great weekend and enjoy a fresh spicy margarita - TGIF!
Joshua M. Belanger