Stocks suffered their worst August in nearly a decade. Blue Chips are down 4.4% for the month of August, and trading volume has been exceptionally light.
In fact, Monday was the slowest session of the year so far. We'll see much more of this light trading leading up to Labor Day Weekend. Historically, not that anything seems to matter historically any more, the market usually has a surge pre Labor Day.
It is also interesting to note that short sellers were not aggressive this summer, despite the market weakness.
We profited 28 to 29% on our newer call yesterday, will trade it again. For risk traders holding the OTM Sept500C risk traders only will hold this until the other call is sold, but the risk increases with how OTM the strike now appears, and the erosion of the option
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We are paying special attention to the fear/greed gauge, VIX. It recently hit its highest level since July, and has actually, despite downturn some days, inspired some confidence in trader picks.
The public is exiting equities.
No one thinks of what this does. The money a company has to use to borrow money, and to be in business, comes from the value of its stock. If shares are redeemed, companies will go down in value, borrow less, hire less, and make less.
Post World War II we created this....an individual based stock market investing style. As we moved on with less and less regulations, everything we bought and sold was by "false facts" provided to us.
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