By: Tom Gentile
on September 13th, 2023
Originally published via our newsletter previously. Subscribe for early access!
The Money Calendar seasonal outlook for September in the Financial Markets:
It doesn’t mean the markets WILL be bearish for the month, but there are more stocks and ETF’s out of our library of securities for this scanning tool that have bearish patterns with these September start dates.
— Tom Gentile
C1P: Chief 1-Percenter
Market in Focus
This is a 120-day candle chart on the QQQ, which is the ETF/fund that has the goal of tracking or replicating investment results or the price and yield performance of the Nasdaq-100 Index.
It’s an ETF/fund that we use to assess our directional assessment of the NASDAQ from a technical analysis stand point.
The NASDAQ has slid the past three trading days, dropping 1.06% today.
In the chart image above the previous peak price of 370 is a price level the QQQ has trade above and below over July and August.
The dotted line indicates that 370 price and if QQQ does not hold that price level as support, this ETF could slide back to the descending resistance line of the channel drawn in.
Power Profit Podcast from Profit Strategies, Inc., and Tom Gentile
My friend and trading colleague Chris Johnson and I run weekly Podcasts on the financial markets called Power Profit Podcast (Watch on YouTube). This is a great resource of information for Options Traders.
I invite you all again to go to the below video and more importantly invite other friends, family, and colleagues to do the same and consider us a quality resource of market education. While they are there they can subscribe for free, and you can count on us to then notify you and them when we have a new session to review.
We ran this session September 1, 2023, and the reason for that was due to the fact the storms might come through and knock out our power.
We were able to get this broadcast in.
And a side note, where I live in FL we got rain and wind, but our power stayed on, and it wasn’t NEAR as bad as it was last year.
Chris is in the Midwest, and he wasn’t fazed by any of this except for the fact his son lives in or near the same county as me.
We got the broadcast in, and we were able to discuss the parallels of those preparing for a storm and those of us options traders and how we prepare for opportunity in the markets.
I’m a ‘Prepper!’ as is Chris and we discuss what it is we prepare for when it comes to our Options Trading in this Power Profit Podcast. Enjoy!
The latest video:
Chris provides a chart showing data where the month of September shows a – 1% performance where the other months average a gain of 1.2%.
Ideas and ways to prepare as options traders (and investors) is to have some cash, hedge existing positions, and consider some longer-term put positions.
All this is done to weather the proverbial storm in the market that is September so we can then be prepared for an expected bounce back in the markets for October and then the race into the finish line which is year end.
September 20-21 is when the FOMC meets.
What is said, decided and forecast may be the ‘WHY’ behind the possible bounce back and bullish move in the markets.
Prior to that meeting is when we will see a great deal of speculation and possibly drive things lower.
Seasonal Investing and Trading Opportunities for September
orange are in there as well.
What those colors indicate are, out of the candidates that have a historical pattern of trading higher or lower 90 or 100% of the time, (9 or 10 of the past 10 years ), those that are green mean the largest majority of those securities have traded higher from that start date to a later date.
Those that are red mean the largest majority of those securities trade lower from that start date to a later date.
The yellow and orange (and lesser shade of green when they are there) mean there is a majority of bullish to bearish candidates just at a lesser % differential than the extreme green or red days.
Here we are September 6th. When I click on the day for September 6th and the first five stocks on the list of securities with bullish or bearish patterns with a start date of today are ALL bearish. (Sorted by positive Power Meter).
One consideration we talk about in the podcast is bearish option trade opportunities on SPY itself and one can go through the Money Calendar tool to see if there is a bearish SPY pattern to consider.
— Tom Gentile
C1P: Chief 1-Percenter
Stock and options trading has large potential rewards, but also large potential risk.
You must be aware of the risks and be willing to accept them in order to invest in the stock and options market. Do not trade with money you cannot afford to lose.
This is neither an offer to buy/sell/ or recommend a particular stock or option.
Hypothetical or simulated performance results have certain inherent limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not been actually executed, the results may have under or overcompensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated trading programs in general are also subject to the fact that they are designed with hindsight.
No representation is being made that any account will or is likely to achieve profits or losses similar to those shown.
Disclaimer of Warranties and Liabilities Tom Gentile and TomsTradingRoom, LLC including employees, consultants, and editors (“Publisher”) cannot and do not warrant the completeness or accuracy of the content found in our areas, or its usefulness for any particular purpose.
Tom Gentile and TomsTradingRoom, LLC also make no promises that our content or the service itself will be delivered to you uninterrupted, timely, secure, or error-free. Under no circumstances will Tom Gentile and TomsTradingRoom, LLC be liable for direct, indirect, incidental, or any other type of damages resulting from your use or downloading of any content on our site.
This includes, but is in no way limited to, loss or injury caused in whole or in part by our negligence or by anything beyond our control in creating or delivering any portion of Tom Gentile and TomsTradingRoom, LLC.
You are agreeing that you bear responsibility for your own investment research and investment decisions. You also agree that Tom Gentile and TomsTradingRoom, LLC will not be liable for any investment decision made or action taken by you, or others based upon reliance on news, information, or any other material published by Tom Gentile and TomsTradingRoom, LLC.
Tom Gentile and TomsTradingRoom, LLC relies on various sources of information that we believe to be accurate and reliable. However, we make no claims or representations as to the accuracy, completeness, or truth of any material contained on our site.
Tom Gentile and TomsTradingRoom, LLC are educational portals, providing content for educational and informational purposes only. Neither Tom Gentile nor TomsTradingRoom, LLC are a broker/dealer. Investors need a broker to trade stocks and options and must meet certain requirements. All securities, futures, and investments data and ideas are offered to self-directed investors. All prices in USD unless noted otherwise.
A full disclaimer can be found here: http://www.tomgentile.com/legal_disclaimers.html.