🚗 How to Profit in a Selloff

[] [The daily rundown of everything happening at Option Pit.]( Mark-et Open Griff here with the Chart of the Day. Charts turning decidedly bearish … S&P 500 Index ETF (Ticker: SPY) broke its uptrend line and is now sitting on the neckline of a head & shoulders. The SPY chart below illustrates a head & shoulders … If the neckline is broken we could see a drop to 407 which is nearly a 6% drop. The tech sector has completely shifted with AAPL, MSFT, and NVDA turning bearish and this may have a dramatic impact on the indices since they hold such a large weighting. [ After yesterday’s breakdown, I added a HYG put spread and an HYG put butterfly … The credit crisis continues progressing and ultimately these corporate bond ETFs will collapse as delinquencies and bankruptcies. . I feel the same way about the homebuilders ETF (Ticker: XHB) … On the long side I am hanging in with Bitcoin miners (RIOT) and short US Treasury bonds (SHY) … Join me tomorrow for new trade ideas and review of the moves I have made this week. Let's Go! [ Trader's Edge: Crafting the Perfect Trade – VIX Report The VIX had September settlement on Wednesday morning settling at 13.96. Boy…that was wildly different than the rest of the day. For most of the day the SPX hummed around up around 10 points assuming the FOMC would follow the line that the banks had laid out. By that I mean no rate hike in September…and no more rate hikes. FOMC Chair Jerome Powell did not see things the same way… The S&P 500 closed down 41.75 points to 4402.20 and the VIX closed at 15.14 A nice move Post Fed… This continues a theme we have seen…a theme that is highly tradeable. I see a great trade forming this time. [Here’s how the setup works…]( - Mark Pit Report: PENN Breakdown The NFL season is upon us. My guy Justin Fields is having problems…to say the least…my Bears CANNOT score… Which leads me to the stock I am discussing today. The Bears over/under is now 6.5 games (probably should take the under). If I want to take the under there are a host of casinos I can bet with. I can bet with Draft Kings, or MGM, or Caesars casino. Today I am going to break down one of the largest online websites…one that is potentially primed to scoop up a ton of betting. [Lets break this stock down…]( - Mark AG’s Views: SPX closes down 1.5% for the first time in 6 months From the Desk of Option Pit Director of Education Andrew Giovinazzi. Right now the market can actually sell off. As I write this traders are bailing on stocks and for the 1st time since the banking crisis in March, stocks are holding a bigger down day. [ VIX curve comes in flat but can still not get out of backwardation or into Zone 3 at an 18 VIX. The big question now is: Will the selloff hold? Jury is still out but the front end of VIX is showing signs of stress so I am leaning a bit short SPY into the close. -AG OPTION PIT GLOSSARY [( There are plenty of terms in the trading world that need defining. The [Option Pit Glossary]( is here to help. Today's phrase is: Candlestick - A type of chart with an open, low, high, and close marker each day (or week/month) that looks like a candle. [( DISCLAIMER: FOR EDUCATIONAL AND INFORMATION PURPOSES ONLY; NOT INVESTMENT ADVICE. The materials presented from Option Pit LLC are for your informational and educational purposes only. Neither Option Pit LLC nor its employees offer investment, legal or tax advice of any kind, and the analysis displayed with various tools does not constitute investment, legal or tax advice and should not be interpreted as such. Using the data and analysis contained in the materials for reasons other than the informational and educational purposes intended is at the user’s own risk. 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