Posted in
Daily Report
By: Tom Gentile
on September 13th, 2022
If you want to see what a bludgeoning looks like in the stock market, as in the markets got bludgeoned today, look no further than today’s price action. The Dow Jones Industrial Average closed down 1276-points. It’s been a long time since I saw the NASDAQ down over 4% let lone the 5.16% it was down today. Might as well mention the S&P, which was down over 4%.
They gapped down and traded down the ENTIRE day. Sometimes you see price volatility in that the markets will swing higher in price and then lower a couple of times or mor. NOT today. Things were in free fall basically all day.
The culprit?
The August Consumer Price Index report.
The reading came in at 0.1% higher than expected. And, if one excludes food and energy, the inflation gauge rose 0.6%. Both of those numbers were higher than expected.
The markets don’t like surprises and if you needed any evidence to that, today proved that to the extreme.
Wash Out Day?
A wash out day is one where the selling happened at an extreme level, and it could be that many or most of all the stocks that were going to be sold were sold – they were all washed out.
The expectations after a wash out – type day is that since most everything was sold, all who are left is buyers. A day like today can also be looked at as a ‘capitulation’ day.
It doesn’t mean they WILL buy, and it doesn’t mean the markets will immediately snap back higher the very next day. There may be a bit more carryover of some selling for those that weren’t able to dump all they wanted on the potential wash out day.
Should this be a day where the majority of things to be sold were in fact sold out, one might consider looking for some of their favorite stocks to go after ‘on sale.’ I mean the markets saw 4-days in a row of price action higher. Call it dollar cost averaging if you want, but there were some bulls out their accumulating stock.
Today’s price action pretty much erased almost all the gains over those past 4-days, but maybe some buyers are out there ready to pick up some pieces of a market that got beat up rather good today.
App: Toms Option Tools
Toms Option Tools scan the markets for bullish and bearish trade opportunities using our proprietary scans and strategy algorithms. TTR Darknet finds bullish entries based on triple stack channel collisions. Money Calendar identifies seasonal patterns with at least 90% accuracy looking back 10 years. Weekly Cash Clock finds short term opportunities that last a week on average. Microcurrency Trader applies Darknet technology and moving averages to cryptocurrencies. Velocity Trader utilizes volume spike and Velocity indicators on custom stock lists. Quantum Scripts scans the markets for momentum acceleration signals and employs Quantum noise filters. Optimal Trader finds directional pre-earnings opportunities that are optimized for entry date, stock movement, and volatility surge. My Trades tracks the profit/loss of your trades, displays stock charts and risk graphs, creates new trades, and edits existing trades. Morning Report provides top 10 option rankings in 6 categories each day.
Disclaimers
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 I, 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.