On July 31's the Fed lowered interest rates by 2.25% despite steady growth. The rate cut was lower than expected causing the market to dip. Trump tweeted the following day about tariffs on China which caused another dip. The markets have been slow to recover since then which leads us to today where we dropped again partially because of protesting in Hong Kong.
Stocks have been the main selloff while investors move over to Gold, Silver, And Bonds during the uncertainty in the markets. The rate cuts should help stocks repair over the next few months, but I would imagine it will be slow going while chances of bad news or trade talk setbacks arising in the near term seem possible.
Volatility levels are expected to stick around for some time benefiting shorter term strategies, higher option premiums, and greater width of strikes. Contemplate small position sizes, iron condors, and faster profit/loss taking until the trend directions becomes more defined.
