Dow: -48.20…
Nasdaq: +50.15… S&P: +1.41…
The Nasdaq (+0.3%) eked out fresh record highs on the first day of September, as new money continued to flow into the market’s largest stocks amid softer economic data. The S&P (unch) closed little changed after coming within one point of its all-time high (4537.36) with a 0.3% gain in the afternoon.
To its credit, the small-cap Russell 2000 (+0.6%) outperformed the Nasdaq, while the Dow declined 0.1%.
When I see the meme stocks and other under $5 and $10 stocks go ballistic it always makes me pause. It also makes me feels like there is a pullback coming. It’s just the natural course of things and most likely a pullback will be shallow to reasonable and will be buyable.
With August over, it’s a good time to take a look at seasonality. Sept is the most bearish month over the last 20 years for SPX and this has played out the last 3 years. On average, begins mid-month after the earlier month was positive.
History may not always repeat but it does often rhyme so just be a little more careful here. What does that mean?
Smaller size and tighter stops unless your duration (holding periods) are longer.
It was a decent day until some later day selling started to kick and some bids faded. Also saw a bunch of failed breakouts on good-looking charts which can represent a lack of conviction.
BBIG had another nutzo day, but every day is an adventure with this one. Tagged $11.90 and it was halted a couple of times. Still epic volume in the stock and still incredibly bullish option call volume. Also, still a good short position. I’ll be glad when it’s all over.
I lightened up a bit today.
Here is the new September P&L