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Assessment: FINALLY…the holidays are over, summer is over and we should see material trading come back into the market. We have also entered the period where you get seasonal selling. With so many stocks up this year, I could see decent selling as traders lock in any losses they have to offset the gains this year. Usually that ends around late October and then we go on cruise control through the end of the year.
Trading has gotten very boring in recent years as algorithms and machines take over the jobs that used to be done by human traders. It makes everything very systematic. We see action January through March and then September and October. The rest of the year tends to be a whole lot of nothing. Some ups and some downs, but nothing big enough to make options trading as exciting as it used to be 10-15 years ago…or perhaps since COVID. I would say 2020 was the last exciting year for trading in recent memory. Buy and hold works fine, but I miss the good swing trading environments. Perhaps they will come back soon enough.
For now, I would like to see how the selling plays out this month and next and if it is enough to finally provide some good entries for both short and long-term positions. Let’s see what we get. I will be watching!
SPY Chart: https://sblk.io/s/lMvMhqhpC7SnDsLb
Some key near term pivot levels. Let’s see how price handles them and maybe, just maybe, it could setup a decent trade.
Good luck in your trades!