After two chaotic first quarters which bucked all historical and seasonal trends the third quarter thus far appears to be unfolding exactly per the script, thus offering us an almost eery silence before the anticipated fourth quarter sh…storm. From a financial blogging perspective it’s a bit frustrating, however I can’t help but enjoy every little bit of tranquility I can get even if it’s just temporary. Not sure about you guys but after six months of global pandemonium my adrenals are shot.
Equities continue to treat water in place and a quick Hail Mary stab into SPX 3235 was promptly slapped down as it didn’t have the proper legal permit and required a notarized letter stating the purpose of the intended transgression.
Better luck next time but until then it seems SPX 3245 is our new overhead resistance. Everything in between remains to be chop until we drop and I don’t recommend you get involved. GREAT time for selling theta via options though! Expected move is your friend.
The NDX also ran into a wall but it wasn’t due to technical overhead resistance – there isn’t any – but rather due to a lack of buyers after yet another exponential spike higher. Over the past three months this has been a pretty reliable pattern and I was already getting giddy about grabbing a bit of big tech. However the bounce back this time has been almost immediate and I do not recommend you chase it higher.
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