Are Volatility Levels Pointing to Major Bounce? Plus My Top ETF Pick

by | May 19, 2022 | Market Updates

U.S. stock futures are down yet again this morning, but there are many signs telling me the market bottom is near — and more in Thursday’s stock market recap.

The put/call ratio is at 1.19, which is huge because we haven’t gone to these levels in quite some time. I mean, the last time we were trading around these levels was the COVID-19 crash of 2020, so don’t say this lightly. 

If you turn your attention to the SPDR Dow Jones Industrial Average ETF Trust (NYSEArca: DIA), you’ll notice it’s sitting right at its previous lows and starting to bottom out. And if you look at its average true range, which measures volatility, you’ll see that it’s peaking out. 

This tells me that the market’s downside pressure was too much too fast, which means there’s a great chance stocks will experience a big bounce. 

In this morning’s stock market recap video, I’ll show you why I believe stocks are oversold… which sector is set to rise… an update on earnings and expectations for retail stocks… why the bond market is so choppy right now… a deep look into market internals and the current divergence… and whether volatility is peaking or not. 

Don’t forget to like and subscribe to our YouTube channel if you haven’t already so you can be notified as soon as we post our next video and see what other trade opportunities we’re paying close attention to! 

P.S. I’m willing to bet everyone is tired of hearing about things like the Russia-Ukraine crisis, inflation and the Federal Reserve…

And if you’ve decided to take a more bearish stance because of them, I don’t blame you. 

The danger we’ve seen in the markets the past couple of months has left a sour taste in our mouths. But here’s the thing… 

I recently discovered a key indicator that finally has me feeling bullish.

So I decided to put together a “meat and potatoes” training class to cover everything people need to know about the key indicator I’ve found, and why I’m so happy about the current economy’s trajectory.

Access the Must-See Replay Here. 

P.P.S. When it comes to trading, every second counts. And in choppy markets like these, often driven by headlines, stocks can make big moves in a flash.

That’s why I want you to get my latest trading ideas and market updates as fast as possible. So I’m rolling out an all-new option for my students to receive trade alerts with Telegram!

Telegram allows me to get trade ideas, videos and watchlists to you in a matter of seconds.

Check out this short article we put together with instructions on how to download telegram and access my private channel. Go here to get the details. 

Stock Market Recap: By the Numbers

This morning’s stock market futures recap: 

DOW (mini)

  • Close: 31,490.07.
  • Futures: 31,169.
  • Change: -271.

S&P 500 (mini)

  • Close: 3,923.68.
  • Futures: 3,889.5.
  • Change: -33.25.

NASDAQ (mini)

  • Close: 11,928.31.
  • Futures: 11,853.25.
  • Change: -79.25.

RUSSELL (mini)

  • Close: 1,774.85.
  • Futures: 1,761.2.
  • Change: -11.6.

Note: Updated as of 9:27 a.m. EDT.

Each Thursday, I’ll combine two of my favorite things into a big-money opportunity: options plays and ETFs. Using options, we can turn momentum analysis of a specific sector — or even an entire country’s stock market — into an actionable trade with double- or triple-digit upside potential. I’ll give you all the details you need to execute this plan.

Need help understanding some basics that we discuss frequently? Check out some of our educational pieces to help get yourself up to speed! Have a question or a topic you’d like us to explain in a future article? Send your thoughts to support@marketgeeks.com

Check back each morning for the Roger Scott newsletter and the most important news and numbers in the WealthPress stock market recap.

WRITTEN BY<br>Roger Scott

WRITTEN BY
Roger Scott

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