Volatility has finally started to pick up, and we’ve recently seen a hard selloff into the previous range. The broad market hasn’t seen much technical damage, yet underneath the surface fewer and fewer stocks in solid uptrends– only 43% of stocks in the S&P 500 are currently above their 50 day moving average.
Too early to tell whether we’ll see a lower low… there’s been many times this year where the market has a large selloff and finishes at the lows, only to have the market reverse hard and continue its uptrend.
Trade #1: CAT
Looking for a pullback to previous support and the rising 50 day moving average.
Expected Price: 110
Sell to Open CAT Oct 110/95 Put Spread
Tier 1: Enter at 0.60, Exit at 0.10
Tier 2: Enter at 0.90, Exit at 0.60
Tier 3: Enter at 1.20, Exit at 0.90