The Art of Dodging Hurricanes and Hedging Stocks

I've got a bit of a bone to pick with the month of September...

Not only has it thrown TWO Category 3+ hurricanes my direction in less than a year...

...it's also the worst month of the year for the stock market - by a mile.

Just compare September to ANY other month of the year...

Makes you want to skip right to October, doesn't it? That month, everything's scary except for the stock market.

Fortunately, the meteorologists got the pattern right on the hurricane. These accurate projections gave anyone in its path (myself included) the time to prepare and even evacuate if necessary.

And it's thanks to ultra accurate pattern projections - 90% or higher - that I've been able to prepare for and profit throughout September's market storms year after year after year...

The Money Calendar - How Seasonal Patterns Give Me a Trading Edge

Before the hurricane hit, I recorded an episode of my Power Profit Strategies podcast with Chris Johnson. We talked about the benefits of being a "prepper," both in life and in the market.

He showed me the earlier chart of the S&P 500's average monthly performance over the past 20 years, and I confirmed his research with September's Money Calendar.

Upon first glance, it looks just like a calendar, with a day assigned to each square. But this calendar has a color assigned to each day as well, running the spectrum from green (bullish) to red (bearish). The greener a day is, the more bullish it is historically, and vice versa for red.

What makes a day more bullish or bearish?

It means there are MORE bullish or bearish patterns that start on that day. To be a candidate, a security must have followed the same pattern at least nine years out of the past 10.

In other words, the green squares mean the majority of those securities with a historical pattern (that must have occurred at least nine times for the past 10 years) have traded higher from that start date to a later date.

Red squares mean the largest majority of those securities have traded lower from that start date to a later date. Yellow and orange squares have a mixed bag, with some bullish patterns and some bearish.

So, now you know how to read the Money Calendar, but how can we use it to trade?

Here's an example from back on September 6.

When I click on that date, you'll see that the first five stocks (based on the highest power meter score) with a pattern starting on September 6 are ALL bearish.

As traders and investors, we can prepare by having some cash, hedging existing positions, and considering some longer-term put positions.

All this is done to weather the proverbial storm in the market that is September so we can then be prepared for an expected bounce back in the markets for October and then the race into the finish line which is year end.

In fact, September's selloffs should provide an excellent opportunity to buy some of your favorite stocks at a discount. And Chris recently put together a presentation on how you can invest in today's leading companies - even pricey AI names! - at a fraction of the cost of traditional methods...

Imagine being able to make a long-term investment in NVDA for just $99 per share RIGHT NOW... instead of $470. (Want the details? Just click here.)

September 20-21 is when the FOMC meets.

What is said, decided, and forecast may be the 'WHY' behind the possible bounce back and bullish move in the markets.

Prior to that meeting is when we will see a great deal of speculation and possibly drive things lower.

Now, this doesn't necessarily mean the markets WILL be bearish for the entire month. But there are more stocks and ETFs that have a strong history of bearish patterns with these September start dates.


Tom Gentile
America's #1 Pattern Trader

The post The Art of Dodging Hurricanes and Hedging Stocks appeared first on Power Profit Trades.

About the Author

Tom Gentile, options trading specialist for Money Map Press, is widely known as America's No. 1 Pattern Trader thanks to his nearly 30 years of experience spotting lucrative patterns in options trading. Tom has taught over 300,000 traders his option trading secrets in a variety of settings, including seminars and workshops. He's also a bestselling author of eight books and training courses.

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