Good morning, traders…
The market has pulled back over the past two days and I can already feel the anxiety creeping into trader chat rooms across the internet.
But don’t panic. This is a feature (not a bug) of market dynamics.
When stocks push to all-time highs, what should we expect?
Nothing less than a healthy pullback.
That’s the natural ebb and flow of markets. Up, down, back, forth.
Extended runs are always followed by retracements. There are zero exceptions to this rule — the only question is when.
I’ve been preparing for this moment for weeks. When we hit +3 average true range (ATR) on SPY during the recent push higher, I started adding hedges to my portfolio:
- Direxion Daily S&P 500 Bear 3X Shares (NYSEARCA: SPXS)
- Invesco QQQ Trust (NASDAQ: QQQ) puts
- SPDR S&P 500 ETF Trust (NYSEARCA: SPY) puts
Those hedges are paying me this week while others wonder what happened to their gains.
That’s because markets move in cycles, waves, regimes.
The traders who survive and thrive understand this rhythm. They position for what’s likely coming, not what’s already happening.
On Wednesday, I watched the VIX break its downtrend and warned you to pay attention. When volatility starts building, price action gets less predictable.
The smooth moves that made the last 90 days so easy to trade reverse into a chopfest.
Yesterday’s major index dip confirms what the internals have been signaling: it’s time to adjust your expectations (and trade accordingly).
Here’s Why This Pullback Is Normal, What The VIX Spike Tells Us, And Which Setups I’m Watching While Others Panic…
What The VIX Is Telling Us
The VIX broke its downtrend yesterday, moved above 16, then pushed above 17.
Rising VIX = growing uncertainty.
When uncertainty rises, stocks struggle to move higher.
The VIX reflects human behavior in its purest form:
Sharp VIX spikes represent quick fear reactions.
Right now, uncertainty is building steadily rather than spiking, which suggests this pullback has room to develop.
Mixed Economic Data
Thursday’s key data showed mixed signals:
- Q2 GDP jumps to 3.8%, signaling strong growth
- Unemployment claims came in lower (positive)
- Durable orders higher than expected (positive)
- Trade balance negative $45B (expected)
Expect continued volatility as markets digest and parse these conflicting signals.
5 Setups I’m Watching Today
Apple Inc. (NASDAQ: AAPL)
Apple’s holding strong despite market weakness, making it a relative outperformer.
Watching September 26 $255 Calls above the $254 breakout level.
Notice where the chart is…
Target Corporation (NYSE: TGT)
Heavy call activity on October 10 $91 Calls. Watching $88.40 level for entry.
Marvell Technology Inc. (NASDAQ: MRVL)
Support around $77, better support at $75. Breakout play above $80 for October 17 $85 Calls.
General Motors Company (NYSE: GM)
Strong daily chart. Pullback buy opportunity near $58.50-$58.90. Breakout above $60.50 for November 21 $62.50 Calls.
Intel Corporation (NASDAQ: INTC)
Strong momentum with a fantastic close on Wednesday. Watching $32.80 for a breakout.
I’m currently holding November $34 Calls, October 3 $30 Calls, and October 10 $32 Calls.
The 1 Strategy That Works 80% of the Time*
Market pullbacks are normal and necessary.
They shake out weak hands, reset overbought conditions, and create better entry points for quality setups.
When the major indexes get shaky, it’s more important than ever to focus on battle-tested, results-proven strategies…
And there’s one strategy that works in 80% of market conditions.*
It’s the same approach I used to turn $50 into $1,260 in just 2 months while stocks struggled with trade war uncertainty.*
It’s simple enough for complete beginners but powerful enough that I still use it today.
This single strategy recently delivered my team 64 winning trades in a row.*
Not because we’re lucky, but because we wait for the right conditions and follow a systematic process.
And now, I’m ready to show you exactly how to weaponize this strategy to your advantage during my 2-Day Bootcamp.
I’ll show you:
- The only strategy you should focus on right now. The same approach that helped my students catch 123 doubles in the past 12 months.*
- The 3 simple rules that keep you out of trouble. The guidelines that helped one student go from $600 to $3,000 in his third week.*
- My personal checklist for every trade. The systematic process that removes guesswork and emotional decisions.
- Why this approach feels just like trading stocks (but with significantly more leverage and precision).
If you’ve been wanting to understand how options really work, now is the time…
The market won’t wait for you to figure this out on your own.
Happy trading,
Ben Sturgill
*Past performance does not indicate future results
