Jon Covington

[Ash Finn @Ashtradesacct]

📈📉 On This Day in Market History: October 9

The same calendar date produced two completely opposite market turning points—exactly five years apart.

On October 9, 2002, the S&P 500 closed at 776.76, approximately 49% below its March 2000 dot-com-bubble peak. Technology stocks had been devastated, major corporate scandals had damaged investor confidence and fear dominated Wall Street.

That closing low marked the beginning of a powerful five-year bull market.

Exactly five years later, on October 9, 2007, the S&P 500 closed at a record 1,565.15. More than twice its 2002 level.

This time, confidence was high. However, problems were already spreading through the housing and credit markets. That record became the final closing peak before the global financial crisis. Over the following 17 months, the S&P 500 lost nearly 57% of its value.

In 2002, overwhelming pessimism appeared near a historic bottom. In 2007, overwhelming confidence appeared near a historic top.

The lesson isn’t that October 9 has some mysterious power over the market. It’s that major turning points rarely feel obvious while they’re happening. When nearly everyone agrees about where the market is headed next, that may be the moment to examine the opposite possibility.

Follow The Core Position for more moments from market history.

#MarketHistory #SP500 #StockMarket

[tastylive @tastyliveshow]

Why does the expiration date of an option matter when volatility starts to rise?

In a calendar spread, traders buy a longer-dated option and sell a shorter-dated option at the same strike. Because the longer-dated option has greater Vega exposure, an increase in implied volatility can work in the trader's favor.

In this installment of Know Your Options, @jschultzf3 @optionsuncapped explains why longer-dated options carry greater Vega exposure and how that can allow gains on the back-month option to outweigh losses on the front-month option when volatility expands.

Have a listen to the breakdown and let us know how you factor volatility into your options trading strategies! 👇

#OptionsTrading #CalendarSpreads

[Jon Covington @suitedconnected]

@jschultzf3 @optionsuncapped Get out the pair of fresh underoos... We're selling ATM premium.

[Ash Finn @Ashtradesacct]

🏦 ON THIS DAY IN MARKET HISTORY — OCTOBER 6, 1979

Federal Reserve Chairman Paul Volcker held an unusual Saturday meeting and announced a dramatic change in U.S. monetary policy.

The event became known as the “Saturday Night Special.”

Inflation had been damaging the economy for years, and Volcker believed the Fed’s gradual approach was no longer working.

Under the new strategy, the Fed shifted its focus:

❌ Away from tightly managing the federal funds rate each day
✅ Toward restricting bank reserves and slowing money-supply growth
📈 Interest rates were allowed to fluctuate much more dramatically
💵 The Fed’s discount rate was increased to 12%
The federal funds rate eventually approached 20%. Mortgages and business loans became extremely expensive, contributing to back-to-back recessions, rising unemployment and widespread public anger.
The policy was brutal—but it eventually helped break the Great Inflation and restore the Federal Reserve’s credibility.
Market lesson: Once inflation becomes deeply embedded, defeating it may require interest rates high enough to cause serious economic and market pain.

Would today’s Federal Reserve be willing to tolerate a recession to defeat inflation?

#MarketHistory #FederalReserve #Inflation

[Dr. James Schultz @jschultzf3]

How about a little portfolio theta for ya?

LG!

[Jon Covington @suitedconnected]

Get in on the weekly gold from our boi. @optionsuncapped

[Dr. James Schultz @jschultzf3]

Sending out our next installment in the Trading Lab TOMORROW. This is where I'm sharing all of my ideas + insights I've discovered in building @optionsuncapped.

Tomorrow is a brand new way to think of alpha 👀

Sign up below!

https://t.co/Kgtrqmdclw

[Rensing Trades @RensingTrades]

It’s time…

[Jon Covington @suitedconnected]

@dampedspring They just yada yada'd the yield

[Jon Covington @suitedconnected]

@TrendSpider Also...

[Jon Covington @suitedconnected]

@optionsuncapped @ambofqwan @jschultzf3 We call it 'aggressive'... Options are aggressively uncapped.

[Ash Finn @Ashtradesacct]

📉 ON THIS DAY IN STOCK MARKET HISTORY — SEPTEMBER 24

Long before Black Friday meant holiday shopping, it meant financial panic.

On September 24, 1869, the United States experienced what became known as the original Black Friday after Wall Street speculators Jay Gould and Jim Fisk attempted to corner the U.S. gold market.

Their strategy was straightforward—and incredibly risky: accumulate huge quantities of gold, restrict supply and drive the price higher.

But there was a problem.

The U.S. government owned a massive supply of gold and could crush the scheme by selling it.

Gould and Fisk therefore used political connections, including people close to President Ulysses S. Grant, in hopes of keeping government gold off the market.

Gold prices soared as speculation took over.

Then, on September 24, the Treasury announced it would sell $4 million in government gold.

💥 The gold market collapsed.

Investors suffered enormous losses, brokerage firms failed, and the turmoil spilled into other parts of the economy.

But perhaps the wildest part of the story came from Gould himself.

After realizing the government might intervene, Gould began quietly selling gold while his partner Jim Fisk continued buying.

The financial chaos of September 24, 1869 became known as Black Friday.

So more than a century before people lined up outside stores looking for Black Friday deals…

Wall Street had already given the name a very different meaning. 📉

#StockMarketHistory #WallStreet #Investing #BlackFriday #TheCorePosition

[Jon Covington @suitedconnected]

@EliteOptions2 Also, you're addicted.

[EliteOptionsTrader @EliteOptions2]

You can’t quit trading now.

You’ve learned too much to stop.

[Ash Finn @Ashtradesacct]

💵 On This Day in Market History: September 22, 1985

Representatives from the United States, Japan, West Germany, France and the United Kingdom met at New York’s Plaza Hotel and reached an extraordinary agreement to push the U.S. dollar lower. The agreement became known as the Plaza Accord.

The dollar had risen dramatically during the early 1980s. While a strong currency made imported products less expensive for Americans, it also made American exports more expensive overseas and contributed to a growing U.S. trade deficit.

The five countries agreed that currencies such as the Japanese yen and German deutsche mark should appreciate against the dollar. Their central banks then conducted coordinated interventions in the foreign-exchange market.

The strategy worked. The dollar declined sharply against other major currencies over the following two years.

However, the agreement also produced ripple effects. The rapidly appreciating yen placed pressure on Japanese exporters, encouraging Japan to adopt easier monetary policies. Those policies helped create the conditions for the enormous stock and real-estate bubbles that developed later in the decade.

The Plaza Accord remains one of history’s most important examples of governments successfully coordinating to influence global currency markets.

The lasting lesson: Markets may be powerful, but coordinated governments and central banks can still change their direction.

Could an agreement like the Plaza Accord work today?

#MarketHistory #CurrencyTrading #PlazaAccord

[Dr. James Schultz @jschultzf3]

Here's one from @optionsuncapped for my beginner traders out there! Please repost and SHARE IT EVERYWHERE:

https://t.co/TiE7Y0k4kK

[Dr. James Schultz @jschultzf3]

Look at @optionsuncapped with their first interview, with my man, John over at Theta Profits!

https://t.co/Mr7wOOORwE

Guys do what we do and get under that video on YouTube in the comments and PUMP THAT ALGO 💪 🤖

[Jon Covington @suitedconnected]

@jschultzf3 Perfect thumb without screaming options for income. 😂

[Ash Finn @Ashtradesacct]

📉 On This Day in Market History: September 19, 2008

Just days after the collapse of Lehman Brothers, the Securities and Exchange Commission temporarily banned short selling in 799 financial stocks.

Regulators feared that aggressive short selling was driving already-fragile financial institutions lower and creating a crisis of confidence throughout the banking system. The ban was one part of a much broader government response that also included a temporary guarantee for money-market mutual funds and the proposal for a troubled-asset program that would eventually become TARP.

Investors initially welcomed the intervention. The Dow rallied nearly 369 points, or approximately 3.4%, that day.

The measures provided temporary relief, but they couldn’t eliminate the toxic mortgage assets, frozen credit markets and deteriorating economic conditions at the center of the crisis. The stock market would ultimately fall much further before reaching its bottom in March 2009.

The events of September 19 created a debate that continues today: Does banning short selling protect markets during a panic—or damage liquidity and prevent accurate price discovery?

The lasting lesson is that during a genuine financial crisis, regulators can change the rules of the market almost overnight.

Follow The Core Position for more moments from market history.

#MarketHistory #StockMarket #FinancialCrisis

[Jon Covington @suitedconnected]

@SJosephBurns Ordered 😁 Looking forward to the read.

[Jon Covington @suitedconnected]

@Ashtradesacct @jschultzf3 Check the tapes!