SPY wrapped up the week with futures showing a minus 57.25, the lowest I have seen in recent memory as this stock took the biggest 1 day loss in 4 years. As well, a major SPY selloff of 346,544,490 shares were traded on this day; more than one share per person living in the U.S. We have not seen these prices since late October of last year, and that puts SPY in a new lower daily range.
That range is between the mid 197's and 204.
From a predictive point of view, this 4 day $13 meltdown will likely see some stabilization with buyers recognizing an opportunity, moving prices back up, albeit with some trepidation. They have the weekend to brood about their losses, possibly another sell off on Monday leading up to 'Turning Tuesday'.
I call this a cleansing, not the beginning of a bear market, as so many are suggesting. A cleanse is a good thing, although it feels bad while it's being administered. In this case, it is caused by global events, not an internal issue like we saw in late 2008. Once some solid support sets in, so will buyers and SPY will start its regeneration as it prepares for the fall/winter growth season.
Stability should start to form in the coming days... may even be slow at first but from a technical standpoint, the worst is likely over. Last October 23rd saw a $15 drop with a full recovery in a week. A $7 drop in December made a full recovery in 2 days and 3 similar events occurred in January of this year. Granted, the dollar drops are not as great but nor were they at record highs back then either.
One reason we trade at least one week out: to weather these unpredictable storms.
Incidentally, this drop was predicted in last Monday's Launch Pad. Congratulations to those who took the trade and had the faith and confidence to stay with it. We had several reports of in excess of 100% gains on some put options!
~ Hugh
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Vacation Schedule Changes
It's vacation time for Hugh and the gang at estockoptiontrading!
Live Trading will be:
Tuesday & Wednesday, August 25 & 26
Wednesday & Thursday, September 2 & 3
The Cocktail Hour Webinar for Thursday, August 27 is canceled.
There will be no personal coaching or Introductory Webinars from Wednesday, August 26 through to Wednesday, September 2.
We will also have limited email access. Rest assured, your emails will be answered upon our return in early September.
Hugh will also likely not trade during that week away.
Thanks for your patience.
~ Dale
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Live Training Dates
Whether you are new to trading or a seasoned pro, plan on these live training sessions. Just one kernel of information could mean the difference between a loser and a winner in this business. Invest in yourself first, then the stock market.
Learn to Trade Live with Hugh, September 18, 19 & 20.
Each webinar is 2 hours in length, is recorded and available for your use for up to 3 months. Play, fast forward, pause and rewind as you wish, but do master the art and science of day trading SPY options to earn 5-10% per day in this unique system.
~ Dale
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