"Buckle Up Buttercup!"

Hi There! September is my most cherished month! It's not just a calendar flip; it's the opening of my new chapter. September, for me, is a time of transition, change, and new beginnings, as the summer gracefully welcomes autumn's arrival. This month is a canvas for reflection, expansion, and rebirth, where I raise my glass (of water) to toast new beginnings and the endless opportunities they bring. Here's to a month as vibrant as the changing leaves, and to the journey that awaits.

Alright, let’s dig in!

September Trader’s Notes:

• September has a reputation for being the most challenging month of the year for investors and traders, based on historical data.

• The S&P 500 Index has shown an average decline of -0.8% in September, over a period spanning from 1928 to 2021.

• September has generally been a negative month for Bitcoin (BTC) and Crypto (see Issue #34 for BTC Seasonality Heatmap).

• The Federal Reserve has scheduled meetings for September 19 - 20, which may lead to increased market volatility.

• There are no confident swing periods for bullish investors in September.

In a recap of last week:

The markets wrapped up last week with a blend of outcomes as investors carefully analyzed a jobs report that provided chow for both bulls and bears. Last Friday's jobs report solidified expectations that the Federal Reserve will maintain interest rates this month, marking a continuation of its strategy in response to a string of economic data hinting at a "soft landing." With 187,000 jobs added in August and the unemployment rate inching up to 3.8% from 3.5%, it's evident that the labour market is cooling without sounding recession alarms.

Stocks rallied impressively last week, with the Dow and Nasdaq surging 1.4% and approximately 3.3%, respectively, marking their strongest showings since July. The S&P 500 joined the party, posting a 2.5% gain for its most impressive week since June. To cap it off, the VIX index (a measurement of volatility) concluded at new cycle lows, further adding to the intrigue in the market's evolving landscape.

Here are other key highlights from last week:

• Oil rose to its highest in over seven months on supply worries

• Bitcoin fell 4.91% to $25,957 last Thursday

• Animoca subsidiary builds AI and NFT tools for educators

• Lufthansa’s Uptrip Loyalty Program takes off on Polygon

During this week:

As we gear up for the shortened trading week ahead, it's crucial to prepare for potential volatility, especially as institutional investors make their return during what's historically considered the most challenging month of the year. Following Labour Day, we anticipate a surge in trading volume, and with major indexes encountering significant resistance levels, the market could sway in either direction. Historical data suggests a possible sell-off, so it's wise to stay vigilant.

Additionally, keep an eye on the Federal Reserve's Beige Book to be released on Wednesday, offering insights into economic activity across all districts. For further information about the Beige Book, refer to Issue #24.

Also, tune in to key addresses by Fed speakers, including Dallas Fed President Lorie Logan, New York Fed President John Williams, Governor Michelle Bowman, Governor Michael Barr, and Chicago Fed President Austan Goolsbee.

The most notable earnings for the week (September 4 - September 8) are outlined in red in the chart below.

Global Economic Data Highlights:

• RBA meeting (9/5) – Rates pricing portrays a high conviction call for the RBA to keep rates at 4.1%.

• Euro Area and UK Services PMIs (9/5) - Above 50.0 indicates industry expansion and below indicates contraction.

• Australia Q2 GDP (9/5) – GDP is not a data point that typically moves the markets.

• Bank of Canada Interest Rate Decision (9/7) – The market ascribes a 5% chance of a hike at this meeting.

• China CPI and PPI (9/8) – Will we see a second month of a decline in CPI?

This week's anticipated bias (not financial or investment advice):

• Monday (09/04/23) - HOLIDAY; Crypto markets open

• Tuesday (09/05/23) - Historically there has been a push-down at open

• Wednesday (09/06/23) - High-Impact News; trade late morning

• Thursday (09/07/23) - Bullish

• Friday (09/08/23) - Sell at the highs; take profits

Trading Tip: Sell bias is expected on Fridays in September!

Week 08/27/23 - 09/02/23 Recap

Special Tools and Strategies

Our Mastermind group conducts monthly research on stocks that have a higher tendency to grow.

We have shortlisted two retirement shares, which we plan to buy in September 2023. These are:

• Johnson & Johnson (NYSE: JNJ)

• Starbucks Corporation (NASDAQ: SBUX)

We intend to purchase these shares on predictable bearish days listed in our Trade Secrets Reports.

Disclaimer: This newsletter is strictly educational. The information this report provides does not constitute investment, financial, trading, or any other advice. You should not treat any of the report’s content as such. Please be careful and do your research.