Republic Risk: Red Across the Board

The Russell 2000 drops under its 200-day moving average. Friday's jobs report hits a critical level of importance... more volatility ahead.

Here is a quick update, although now might be the hour we see institutions step in and bid.

This has been the worst day of the yar, and one of the unsurprising rug pulls that tend to happen around Fed meetings. As I’ve noted, pivots aren’t good for the market, and this has been a brutal day. With the Russell 2000 now under its 20-day moving average, we’ve seen a remarkable amount of selling across the board.

Even the two stocks that did push above their 20-day moving average on our list reversed quickly this morning. Always pay attention to that 20-day moving average.

As I’ve noted repeatedly, volatility picks up in the second half of July and tends to run until late October in election cycles. Sell calls against long-term positions, and if you’re going to sell… GET PAID to do it by selling in the money calls on stocks you own. Don’t leave any money on the table, and remember - there is likely MORE liquidity coming in the months ahead from the Treasury.

Stay positive,

Garrett