{"id":105192,"date":"2021-10-01T00:42:01","date_gmt":"2021-10-01T04:42:01","guid":{"rendered":"https:\/\/ibkrcampus.com\/?p=105192"},"modified":"2023-02-24T10:11:28","modified_gmt":"2023-02-24T15:11:28","slug":"stocks-drop-on-september-30-the-fun-has-merely-begun","status":"publish","type":"post","link":"https:\/\/www.interactivebrokers.com\/campus\/traders-insight\/securities\/stocks\/stocks-drop-on-september-30-the-fun-has-merely-begun\/","title":{"rendered":"Stocks Drop On September 30 \u2013 The Fun Has Merely Begun"},"content":{"rendered":"\n<p>Stocks \u2013 AMZN, AAPL, DIS, FDX<\/p>\n\n\n\n<p>Macro \u2013 SPY, QQQ, VIX<\/p>\n\n\n\n<p><em><strong>Michael Kramer and the clients of Mott Capital own AAPL.<\/strong><\/em><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-s-p-500-spy\">S&amp;P 500 (SPY)<\/h2>\n\n\n\n<p>It\u2019s a pretty bad day for stocks, with the S&amp;P 500 falling by about 1.2% to finish the month down 4.7%. The market doesn\u2019t look all that healthy, but then again, it hasn\u2019t looked healthy for weeks, maybe months. It seems like at this point; we are in the middle of wave three down. We will need to confirm this by falling below 4,300 tomorrow. If so, I see a move to 4,240 at a minimum and could be as steep as 4,115.<\/p>\n\n\n\n<p>But here\u2019s the problem, at 4,115, if that does come into play, the S&amp;P 500 would be trading for a stunning 19.3 times its next-twelve-months earnings estimates. A still very pricey multiple. If I had my way, I would like to see the index settle at and trade for something like 17 times NTM estimates, or 3,600. I think 17 is a good PE for the market, given where growth rates are going and the low rate world. We have to hope that earnings estimates hold up and don\u2019t start coming down.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" width=\"1100\" height=\"558\" data-src=\"\/campus\/wp-content\/uploads\/sites\/2\/2021\/10\/1-SP-500-1-1100x558.png\" alt=\"S&amp;P 500\" class=\"wp-image-105194 lazyload\" data-srcset=\"https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2021\/10\/1-SP-500-1-1100x558.png 1100w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2021\/10\/1-SP-500-1-700x355.png 700w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2021\/10\/1-SP-500-1-300x152.png 300w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2021\/10\/1-SP-500-1-768x389.png 768w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2021\/10\/1-SP-500-1.png 1320w\" data-sizes=\"(max-width: 1100px) 100vw, 1100px\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 1100px; aspect-ratio: 1100\/558;\" \/><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\">VIX (VIX)<\/h2>\n\n\n\n<p>Despite today\u2019s drop, the VIX hardly increased, rising just 2.5% to 23.1. Indeed, not a sign of any fear being built into the market yet. It could be an indication that serious selling hasn\u2019t even begun. If you start to get a VIX that can go up in an orderly manner instead of those significant 20% one-day jumps, you could see a market that moves much lower over time.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" width=\"1100\" height=\"480\" data-src=\"\/campus\/wp-content\/uploads\/sites\/2\/2021\/10\/2-VIX-1100x480.png\" alt=\"VIX\" class=\"wp-image-105195 lazyload\" data-srcset=\"https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2021\/10\/2-VIX-1100x480.png 1100w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2021\/10\/2-VIX-700x305.png 700w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2021\/10\/2-VIX-300x131.png 300w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2021\/10\/2-VIX-768x335.png 768w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2021\/10\/2-VIX.png 1320w\" data-sizes=\"(max-width: 1100px) 100vw, 1100px\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 1100px; aspect-ratio: 1100\/480;\" \/><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\">Nasdaq (QQQ)<\/h2>\n\n\n\n<p>Meanwhile, the Qs have been consolidating and forming a bear flag, which was present in the S&amp;P 500 futures this morning before it broke. The pattern would suggest the Qs fall back to $346.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" width=\"1100\" height=\"480\" data-src=\"\/campus\/wp-content\/uploads\/sites\/2\/2021\/10\/3-Nasdaq-1100x480.png\" alt=\"Nasdaq\" class=\"wp-image-105196 lazyload\" data-srcset=\"https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2021\/10\/3-Nasdaq-1100x480.png 1100w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2021\/10\/3-Nasdaq-700x305.png 700w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2021\/10\/3-Nasdaq-300x131.png 300w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2021\/10\/3-Nasdaq-768x335.png 768w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2021\/10\/3-Nasdaq.png 1320w\" data-sizes=\"(max-width: 1100px) 100vw, 1100px\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 1100px; aspect-ratio: 1100\/480;\" \/><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\">Apple (AAPL)<\/h2>\n\n\n\n<p>The chart for Apple looks pretty weak, and it should break support at $141 and start its drop to the low $130s.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" width=\"1100\" height=\"480\" data-src=\"\/campus\/wp-content\/uploads\/sites\/2\/2021\/10\/4-Apple-1100x480.png\" alt=\"Apple\" class=\"wp-image-105197 lazyload\" data-srcset=\"https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2021\/10\/4-Apple-1100x480.png 1100w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2021\/10\/4-Apple-700x305.png 700w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2021\/10\/4-Apple-300x131.png 300w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2021\/10\/4-Apple-768x335.png 768w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2021\/10\/4-Apple.png 1320w\" data-sizes=\"(max-width: 1100px) 100vw, 1100px\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 1100px; aspect-ratio: 1100\/480;\" \/><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\">Amazon (AMZN)<\/h2>\n\n\n\n<p>Amazon looks pretty bad too, with a break of support at $3,300 and a negative sloping RSI, the stock\u2019s next stop will probably be $3200.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" width=\"1100\" height=\"532\" data-src=\"\/campus\/wp-content\/uploads\/sites\/2\/2021\/10\/5-Amazon-1100x532.png\" alt=\"Amazon\" class=\"wp-image-105198 lazyload\" data-srcset=\"https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2021\/10\/5-Amazon-1100x532.png 1100w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2021\/10\/5-Amazon-700x338.png 700w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2021\/10\/5-Amazon-300x145.png 300w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2021\/10\/5-Amazon-768x371.png 768w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2021\/10\/5-Amazon.png 1320w\" data-sizes=\"(max-width: 1100px) 100vw, 1100px\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 1100px; aspect-ratio: 1100\/532;\" \/><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\">Disney (DIS) <\/h2>\n\n\n\n<p>Disney is very close to falling below support at $168, and with a giant gap to fill at $154, it is not looking good.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" width=\"1100\" height=\"480\" data-src=\"\/campus\/wp-content\/uploads\/sites\/2\/2021\/10\/6-Disney-1100x480.png\" alt=\"Disney\" class=\"wp-image-105199 lazyload\" data-srcset=\"https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2021\/10\/6-Disney-1100x480.png 1100w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2021\/10\/6-Disney-700x305.png 700w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2021\/10\/6-Disney-300x131.png 300w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2021\/10\/6-Disney-768x335.png 768w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2021\/10\/6-Disney.png 1320w\" data-sizes=\"(max-width: 1100px) 100vw, 1100px\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 1100px; aspect-ratio: 1100\/480;\" \/><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\">FedEx (FDX)  <\/h2>\n\n\n\n<p>The disaster, also known as FedEx, keeps on dropping with no end in sight. It could still have a considerable distance to fall, too, with $180 the most suitable spot.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" width=\"1100\" height=\"532\" data-src=\"\/campus\/wp-content\/uploads\/sites\/2\/2021\/10\/7-Fedex-2-1100x532.png\" alt=\"FedEx\" class=\"wp-image-105202 lazyload\" data-srcset=\"https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2021\/10\/7-Fedex-2-1100x532.png 1100w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2021\/10\/7-Fedex-2-700x338.png 700w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2021\/10\/7-Fedex-2-300x145.png 300w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2021\/10\/7-Fedex-2-768x371.png 768w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2021\/10\/7-Fedex-2.png 1320w\" data-sizes=\"(max-width: 1100px) 100vw, 1100px\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 1100px; aspect-ratio: 1100\/532;\" \/><\/figure>\n\n\n\n<p><\/p>\n\n\n\n<p>Originally Posted on September 30, 2021&nbsp;\u2013 <a href=\"https:\/\/mottcapitalmanagement.com\/stocks-drop-on-sepetmeber-30-the-fun-has-merely-begun\/\">Stocks Drop On September 30 \u2013 The Fun Has Merely Begun<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>It\u2019s a pretty bad day for stocks, with the S&#038;P 500 falling by about 1.2% to finish the month down 4.7%.<\/p>\n","protected":false},"author":17,"featured_media":105202,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[18,6,8,9,22,26,3],"tags":[155,149,1151,1766,2782,262,317],"contributors-categories":[13718],"class_list":{"0":"post-105192","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-macro","8":"category-north-america","9":"category-region","10":"category-securities","11":"category-stocks","12":"category-text-articles","13":"category-traders-insight","14":"tag-aapl","15":"tag-amzn","16":"tag-dis","17":"tag-fdx","18":"tag-qqq","19":"tag-spy","20":"tag-vix","21":"contributors-categories-mott-capital-management"},"pp_statuses_selecting_workflow":false,"pp_workflow_action":"current","pp_status_selection":"publish","acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.9 (Yoast SEO v27.5) 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