Last week we saw the market mostly chop around and this week the selling began. It’s important to anticipate when the market will drop so we can position ourselves wisely. The first step to understanding when the market will make big moves is being educated and aware of the economic events that will occur throughout your entire trading career.
This week, specifically on Thursday, Sept. 9, the SPX (Equity Index) roll began and will continue until next Friday, Sept. 17. It’s important to understand what these events are, when they occur, how they affect the market, and how we can prepare to trade them.
Every quarter big money takes time to lower the market, sell positions, and roll out into further expirations. What this means is that big money is getting ready and positioning for the next quarter, which is ultimately what is sending the market lower this week.
We can expect more volatility these next two weeks as quarterly futures contracts expire and big money managers roll over their positions. The ES (S&P 500) has experienced a healthy pullback over the last few days with a reversion to the mean. We plan to continue to buy the dip and drive the market higher following the rollover.
Watch the video above to review current stocks we’re watching such as GOOGL, ROKU, and TSLA. Remember to familiarize yourself with events that move the market every week, month, and quarter. Be patient, and let’s finish the week strong.
Stay Focused!