During the summer run-up there was hardly ever a day like today, where big winners were taken to the woodshed while the Dow is up. Are we witnessing the beginning of a major trend change, or is this just another speed-bump/dip to be bought with both hands?DJI +100 QQQ -5.60 -1.0% More dramatic is the haircut on some of the big runners over the past few months, many of which we have recommended. Here is just a sampling: AMD -7.00 = -4.0% AVGO -7.20 = -2.4% HOOD -4.30 = -4.0% META -16.00 = -2.0% ORCL -7.95 = -3.1% PLTR -11.90 = -6.8% RKLB -3.2 = -7.2% USAR -1.40 - -8.1% TSLA -3.5 = -1.0% Ultimately, one of two potential outcomes will present trading opportunities. First, if this is just a dip, we will be looking to buy some of our favorite names with new calls, or perhaps a new name or two that are on deck with October-December expirations. Second, if this be just the beginning of a much broader sell-off we be looking for some downside trading opportunities, with either QQQ puts or UVXY calls. Stand-by for signs of one of these two outcomes, which should be made clear as trading unfolds this week. Meanwhile, be cognizant of stops on any held positions in the days ahead. The best trading months of the year begin after Labor Day weekend and we want to be ready with sufficient risk capital to put to work whatever the dominant trend of the market.
