Stocks Slip Friday As 'Quadruple Witching' Spooks the Market

[Option Beast]( 09/19/2020   |   [View in browser]( --------------------------------------------------------------- [Stocks Slip Friday As 'Quadruple Witching' Spooks the Market]( As Barron's reported Friday, markets braced for "quadruple witching," as both futures and options tied to individual stocks and indexes expire simultaneously, which often indicates volatile trading. [More...]( SPONSORED CONTENT [11-Hour Options: The Ultimate Income Trading System [Free eBook]]( In this eBook, Dave shows you exactly how he, and other traders, enjoy a 94.8% win-rate over the last 727 trades by focusing on high-probability trades. You're typically only in the trade for about 11 hours. And the goal is to make 4%, 5% or 6% on each trade (average has been 5.3%). 5.3% may not seem like a lot. But when you win 94.8% of the time, it adds up quickly! [CLICK HERE for instant access.]( [REFLECTIONS... The Quagmire Continues by David Sager](#) Things were a bit rocky this past week, with U.S. stocks finishing in topsy-turvy fashion. This was the second straight week of declines , and volatility that just might signal a bellwether for the fall months. The S & P 500 fell 2.5% to 3341, while the Dow Jones Industrial Average declined 468 points or 1.7% to 27666. The tech heavy Nasdaq (with the big boys) dropped a noteworthy 4.1% to 10854- carrying over from last week's dip. The reopening of the National Football League this past week (and college too) gave a clear sign a bit of normalcy is returning. Investors are anxiously contemplating the possible impact the return of football might have on the stock markets. The shut down of sports from the onset of the Covid 19 pandemic last March has disrupted college sports and professional sports to a serious fiscal degree. College funding of the 'other' sports, mens and women are severely impacted. The biggest game is football, which accounts for a lion's share of legal online wagering. The revenue from TV will also help college sports and hopefully begin to start filling the drained coffers. There is the matter of the election. The RealClear Politics average of opinion polls has narrowed but still shows former Vice President Joe Biden with a 7.5 percentage-point lead over President Donald Trump. RealClear Politics' average of betting sites put the two candidates in a virtual dead heat at the end of August after the Republican National Convention, but Biden's lead was about in line with the site's average of polls late this past week. (9-7 to 9-11). No matter if Donald Trump or Joe Biden wins in November, 2021 will usher in the first year of the presidential term, and that is usually an awkward time for the stock market. A little history of the 10 close elections in the post-World War II era have seen sell offs in the six to seven weeks before the election, according to research notes from Deutsche Bank's strategists led by Binky Chadha., "We see this as reflecting the relatively classic buildup of an uncertainty risk premium, with increased buying of protection for potential volatility as the calendar date of the election approached," they write. A contested election would likely send stocks lower. The funk over hanging chads on the Florida ballots in 2000, which ultimately had to be decided by the Supreme Court in BUSH vs GORE, trimmed 5% from the S & P 500 index. Trimming your stock positions and taking some profits might be prudent. Metals Daily expects gold to potentially climb as high as $2,200 before year end, ($1,9343, (9-11-2020), "which would give gold a 45% gain on the year," while silver may challenge the $35 level at year end, which would represent a "massive" 95% gain on the year, says Ross Norman, chief executive officer of Metals Daily. "The factors that have underpinned gold's move higher are still with us" says Mr. Norman. Long term drivers will continue to be 10-year U.S. Treasury yields, and the presidential election will play a part. "The unclear outcome, in what is likely a close-run race, will be to keep uncertainly high and by extension, gold high." RUMBLINGS ON THE STREET Jason Brady, chief executive of Thornburg Investment Management, Barron's "[Banks are] the only sector in which guidance is required in the context of providing estimates of future losses," says Mr. Brady, "I think bank profits have already taken a hit." Interestingly during the year's first half, 12 of the largest US banks set aside $72 billion in loan loss reserves, more than doubling the reserves set aside at the end of 2019, according to data from USB. In some cases those reserves turned would-be profits into losses. President Donald Trump, at a Labor Day press conference, Barron's "We lose billions of dollars and if we didn't do business with them (China) we wouldn't lose billions of dollars. It's called decoupling..." Michael Darda, MKM Partners strategist, Barron's Economically sensitive stocks could be a good bet for investors with a longer time horizon, says Mr. Darda, who expects them to outperform over one to three years. He predicts that a strong economic recovery will follow the Covid 19 crisis. "If you assume that we beat this virus, and have a multiyear holding timeline, how could you not prefer reopening trades over the lockdown stocks that have led so far this year?" he asks. Dev Kantesaria, managing partner at Valley Forge Capital Management, WSJ "When I see selling in the marketplace, I ask myself 'Where else are these investors going to park their money?" said Mr. Kantesaria, who oversees about $1 billion in investments. "If you are a long-term investor, you should be buying these growth stocks." [3 Top Stocks Under $20]( Guy Spier, a famous value investor, once said that one of the best ways to follow a company is by buying one share of it. After all, once you own a share, even one share, you have skin in the game. This isn't easy if you're interested in a $3,000 stock like Amazon or even if you wanted to pick up shares of Snowflake during its initial offering of $245 a share on Wednesday. Double-digit-priced stocks, especially those below $20, can provide a low-cost entry point into some spectacular opportunities. Here are three stocks priced below $20 a share that are worth buying now. [Article continues...]( [Low Down Payment Mortgage Options For First-Time Homebuyers]( Even if you find the best mortgage rates, saving for a down payment is one of the biggest challenges when it comes to home buying. Luckily, there are several low down payment mortgage options available to help cover the upfront costs of buying a home. If you're looking for down payment assistance, read on to learn which course of action might be the best one. [Click to continue reading this article...]( [More Than One Third Of All NYC Residents Consider Leaving]( The cost of living in New York City is so steep that in the past 4 months, 35% have considered leaving. A Siena College study shows 44 Percent of Six-Figure Earners in NYC Have Considered Relocating. The study also states 80% of those living in the city make $100,000 or more, and that translates to 35.2% of all residents. 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