Fast Money Blog- 9/6/24

You’ve been on my mind. Below is what happened on Wall Street this week.

What happened over the past 5 trading days on Wall Street is pretty much the same thing that happens every year right before 9/11.

It’s very common in the last week of August to see your favorite tech stocks sell off. This sell off (or small pullback) occurs because institutional traders tend to go on vacation a week or two before Labor Day. In addition, the U.S. stock market historically pulls back into the lead-up to 9/11, which has become an annual day of mourning and remembrance. 

Since the terrorist attack in 2021, the U.S. stock market has not rallied in the 2 weeks leading up to this somber period. Experienced traders know that during this time of reflection the best strategy to generate profits is a combination of 30-day covered calls and 15-day bear call spreads. 

Don’t Fight Seasonal Trends 

Remember being mindful of seasonal trends is important, as they play a role in your stock trading success.

My September Outlook

From September 15th on, I expect to see a rally for all tech stocks and a return to high volatility. I also expect the Federal Reserve to lower interest rates in the month of September, as we head towards Q3 earnings in October. 

Stay open and stay positive. I see a bull-market rally just around the corner. 

Tyrone Jackson, The Wealthy Investor