Fresh Lows for the Financial Markets September 23, 2022. 

Tom Gentile

Posted in Big Picture

By: Tom Gentile on September 23rd, 2022 • 3 mins read

Today marked the fourth day in a row the major indeces traded lower.

This brings the markets to fresh, yearly closing lows for the year.

Figure 1: Year-to-Date (YTD) Candlestick Chart on DIA
Figure 1: Year-to-Date (YTD) Candlestick Chart on DIA

You may hear or read in various financial news sources the rop is happening on rising fear of a recession. 

Rising?  I didn’t know the fears went away and are now rising.  They’ve been with us and near as I could sense they were already pretty high.  But, ,maybe they mean those that weren;t already concerned are now getting concerned.  I guess there are just some bulls that are never going to admit concern, but regardless of their thinking the marekts are still slumping.

There are stock that are trading at or near their 52-week highs even today and I have shown in prevoious educational articles how to use my tools, www.tomsoptiontools.com, to find them.

Roght now, though the overall trend is to the downside.

The Fed continues to raise interest rates.  There are concerns that in their efforts to fight off inflation by raising rates this may actually bring about a recession.  There are some out there that believe we are already in the start of a recession.  Then there are those that say even if a recession hits, they are hoping it is a soft-landing and the recession is going to be a mini-recession and not last that long.

Bear Market Territory for the Dow

The Dow trade as low as 800-points on the day. And een though it closed off their lows it was sstill a closing low for the year.

Also note, at the lows the Dow was off 20% from its closing high, which technically put it in what’s considered Bear Market territory.

In my research I see where CNBC reported over 91% of stock in the S&P were trading lower.

Yesterday I reported Wall Street firm Everscore ISI cut its 2022 year-end price target for the S&P to 3,975 from 4,200.

TODAY Godlman Sachs cut its target on the S&P 500 anticipating another 4% drop in price from where it is at currently.

Checking the Morning Reports List for most activity for Put options activity I see this:

Figure 2: Unusually High Put option Volume List
Figure 2: Unusually High Put option Volume List

If one is looking for put options ideas this list may help.  Please discuss these with your brokers before acting on any.