“Look at market fluctuations as your friend rather than your enemy;

Profit from folly rather than participate in it. ”

– Warren Buffet  

September is here!

Volatility is right behind it!

The seasonal pattern of an August / September decline is an almost certain self-fulfilling prophecy. 

Between

1) the peak hurricane season around labor day impacting oil and the gulf coast,

2) the anticipated window dressing of hedge funds for end of year profits, as well as

3) the Quad Witch option expiration

A labor day decline is an almost certain seasonal anomaly for early FALL trading.

Volatility is your friend!

Trade the indicators when the seasonal pattern is confirmed.

The charts confirm what Jim Crammer and Larry William identified as the September 17th mile marker for a seasonal correction. 

As a student of technical analysis, it is clear confirmation that all of the major indexes are rolling over on the weekly charts.

With the daily charts having a magnetism of the 50 MA pulling them down along with the $VIX spiking above 20, it all adds up to a clear signal that a correction is in play. 

Healthy markets digest gains in seasonal/yearly pullbacks as corrections of 5-10% at least 1 to 2x times per year. Expect them, don’t fret them.

We have not had a 5% pullback in a very long while!

With the indexes coming off at all-time highs, this is a GREAT TIME to lower your cost basis on LONG TERM HOLDINGS with covered calls, as well a trade into IV PUTS to the downside as they confirm. the market rolling over.