In my previous update last Thursday, I gave three log recs (SPX, UBER, AAPL) and ended with the phrase “don’t be short”.  That may seem redundant to say “don’t be short”, if I was recommending longs, but I know that most people reading this were actually looking to be short, and that was borne out by the amount of retail put buying at the end of last week, especially Thursday. I knew it was going to be tough to get people to believe in the long side, but I at least did not want you to get trapped on the short side. Thursday was actually a down day, and I was a day early once again, as I often am.

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However despite that, Friday rebounded in the SPX to take out Wednesday’s high, and Monday took out Friday’s high. So plenty of opportunity for profit in SPX call options. The star though was UBER which saw my options almost double in price for the October 20 expiry options I purchased. The jury is still out on AAPL where I hold November expiry call options. That is my only position.    This week we have CPI and PPI and not long after that earnings season is upon us again. Tuesday could back and fill a little bit, but at this point I definitely believe last Thursday’s low is safe. Watch the September 1st opening price. Do NOT short stocks that are trading above it. That includes MSFT, AMZN, TSLA. The major indices are just under their respective September 1 opening prices. If they are able to regain those levels, especially post CPI then it’s a good indication this market wants higher. It seems like a good backdrop right now, for further encouragement that the FED will be pausing.