Friday 9/10/2021 was a pretty bearish day for the markets in general. Every single index gapped up higher but sold off quickly into the afternoon to go out near the lows of the day. The SPX put together 5 red days which we have not seen since February. Seasonally, Sept is one of the worst for the markets based on history but with interest rates so low, buyers will likely continue to support this market. With the S&P 500 closing lower over the past five sessions, it shows that market pullback has started already. Implied volatility levels moved higher ( VIX > 20 ) closing at levels not seen in several weeks.

We can expect to see choppier price action this week without much in the way of news or earnings to provide some catalyst for moves. Don’t expect any big sell offs. In nutshell, this week outlook is chop with maybe a little more downside action.

 Economic calendar this week – 

• Sep 13: Federal Budget

• Sep 14: Consumer Price Index

• Sep 15: Import Price Index

• Sep 15: Industrial Production

 • Sep 16: Jobless Claims

Here are some trade ideas:

 SPX – With five consecutive closes lower, stocks may continue to fall. Call credit spreads with expiry Sep 24 looks good.

 AAPL – possible long if it breaks down to $142.5- $145 – AAPL has an event ( new iPhone 13 phone launch ) coming up on Tue 9/14/21. Buy the rumor and sell the news

 NVDA – The stock has been trading sideways for several sessions. Iron condors around potential support and resistance levels may be the way to go.

 DKNG – possible long on pullback to $60

 DOCU – possible long if gets to $270

 MRNA – trading range $375 to $450 (Strangle)


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