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If This Happens in September, I’d Back Up the Truck and Buy Shorts

by | Aug 12, 2022 | Market Outlook, Stocks

I have some thoughts on how to play the market in September, but first…

We’re through the meat of earnings season and we didn’t see any massive earnings numbers or big tech companies move the needle…

But we did have some amazing action on the back of the latest Consumer Price Index (CPI) number. And in my Monday morning lookahead for the week, there was one thing I didn’t even consider…

And that’s a small inflation number, since we haven’t had one in almost a year. The reading came in on the low side of expectations and seems to have also caught the market a bit off guard. 

The expectations were for an 8.7% increase, but instead we got 8.5%, and a 0% rise month over month, mostly because of a drop in energy prices. 

For those who don’t understand why lower inflation is good for the market, it means the Federal Reserve may not have to keep raising interest rates as aggressively or as long. And that leads me to how I’d play the market in September… 

How to Play the Market in September: A Fly in the Ointment

We had a massive move up in crude oil in June, and we’ve been falling since, from $110 in July down to the $90s now. But oil is the potential fly in the ointment here… because I see prices heading back above $100. And here’s how I’d play the market in September…

We’ve risen about 2% from 4,140 to 4,200 in S&P 500 emini futures — a massive move — for September, and we’ve held it for the most part.

We’re at the peak of it right now above 4,200, so we should see some selling.

If we get to 4,300, I’d back up the truck to start shorting and get out of as much stock as I could. I’d expect a move back down to 4,000 soon after. 

So I expect we’ll go sideways for a while longer before heading back down in September, and that’s how I’d play the market. 

Check out my short video above and let’s discuss this and a stock I talked about Monday, Rivian Automotive Inc. (Nasdaq: RIVN). 

Are there any topics you’d like to see me cover or questions you’d like answered? Send me an email at jeff@joyofthetrade.com! And be sure to stay ahead of the markets by subscribing to our YouTube channel and our Instagram page for all of the latest!

P.S. How to Make Overnight Moves and Minimize Risk Exposure

We haven’t seen investors pull their money out of the market at a rate like this in years…

Meanwhile, the Federal Reserve is about to meet and let us know how much it plans to raise interest rates this week.

And while others panic, I’m prepping for some of the biggest overnight turnarounds we’ve ever seen…

Starting with tonight’s overnight trade opportunity! 

And based on what the market internals and global economy are showing right now…

I believe we’re just at the beginning of a… 

Another Massive Overnight Opportunity!

WRITTEN BY<br>Jeff Zananiri

Jeff Zananiri

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