One Last Bear Rampage in 2022: Communication Services

We've Only Just Begun

I am strolling through the charts and seeing areas of the market that haven't even completed tops yet. It took 5 minutes of looking at charts to find these, this is the top of my giant pile of charts. And by top, I don't mean the best, though some are great. I mean I made it through only a sliver of all my watchlists and had enough charts for a short video.

Verizon'd

I mentioned October $35 stike puts for 23 cents in September. They are 60 cents now with Verizon at $36. If thte market breaks lower into next week, could end up being a nice multibagger.

Taking A Swing at Verizon

Bought the weekly $40 puts for 18 cents.

Open Door

The orange line marks the 52-week low in ZB. It doesn't have to break for a bear move, but a break would be more bearish for the market than a rally because a rally would signal the long-end of the bond market finally pricing in lower interest rates. It's possible stocks and bonds drop and rise together, but my expectations is bonds will lead a move higher. If bonds rally now, then stocks probably bottom in a month or so. If bonds drop now, then the final low in stocks is probably lower and closer to or into November. That is a general sense, not a hard forecast.

Technicals say bounce from oversold indicators and bearish sentiment. ES shouldn't clear 4020 and SPY $400. A move above could result in a ripping short squeeze.

If the markest break, there are bearish targets galore. These are only the few I've posted recently or noticed as I'm going through charts this AM...

Always a New Verizon

I sold my $40 strike Verizon puts for September because of the rally getting underway. It was the right call, but it might be worth another go in October. ZH: Verizon Shares Slide After CEO Warns Of Wireless Subscriber Decline

I'd like to buy the $40 strike puts at a discount, currently around $1, if I can get it. There's room to bounce up to around $43.50 area if the market doesn't fall off a cliff. Otherwise, the October $35 strikes at 23 cents for a gamble because I expect a big flush into October and that's a monster 4-year topping pattern.

New Verizons

Verizon goes below the horizon. It didn't make a new low on Friday, but Wednesday's low is not support. The next support is long-term support around the $30 area.

Place Your Bets on Verizon

I have some puts because they're cheap insurance if the bear suddenly accelerates, but I could see the case for the $45 calls too if the market bounces here. Since it's at major support, the next move will be a big one.

Verizon

Long-term support at $40.

Telecoms Kill XLC

AT&T and Verizon both tanked on earnings. They aren't huge portions of the fund, but they're large enough.

XLC Holdings

 This post will go through some of the holdings in XLC. Many of these have horizontals at gaps. Most look doomed, including Disney, but I'm here for a bounce, not a long-term hold.