Prepare For Further Downside Volatility Before Fed's Rate Cut, And After

Sep. 08, 2024 10:02 PM ETDXY, RKT, S, SLV, SOXL, SPY, TQQQ, WTI, ZS19 Comments
(16min)

Summary

  • September is historically challenging for stocks, with this year being particularly tough, marked by significant drops in the S&P 500 and Nasdaq.
  • The Fed's potential rate cut is crucial, with a .25% cut likely, but even a .50% cut would still be restrictive. Either way, the market could fall again.
  • Market volatility is expected, but long-term investors should continue investing steadily, while traders can capitalize on short-term opportunities.
  • I am buying tech stocks and ETFs to trade, particularly in chips and security, while hedging with puts on leveraged ETFs for downside protection.

Falling Rocks Warning and Danger Road Sign

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The toughest week so far for the toughest month of the year

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This article was written by

David H. Lerner profile picture
30.39K Followers

David H. Lerner is an analyst with a decade of experience utilizing his professional background in software consulting and technology to identify market trends and provide long and short trade ideas. David employs a combination of technical analysis and market psychology to capitalize on narratives for outsized returns. He also utilizes “Cash Management Discipline,” a simple trading style to hedge against the volatility of today’s market climate.

He leads the investing group Group Mind Investing where he uncovers actionable trading and investing ideas nearly every day. Other features include: long and short swing trade alerts, daily macro analysis, weekly articles, and chat for community interaction and questions. Learn More.

Analyst’s Disclosure: I/we have a beneficial long position in the shares of RKT either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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