Good morning, Actions Alerts Plus subscribers. It's October 17, 2022, Monday. It's time for our rundown. Let's go ahead and get started. We have a lot to cover today. So this morning, we have a strong rally. But as we have become accustomed to, these are often short-lived. And at some point in time, these rallies will be meaningful and point to higher prices. But we don't know just yet.

Remember, the most important bottom, if you're looking for one of those things, is the last one in markets. So volatility-- and we'll talk about that in just a couple of moments-- remains elevated. And that did not change much on Thursday, with the big giant rally, nor did it change on Friday when the markets got hammered and closed on the lows of the session.

The S&P 500, of course, joined the NASDAQ closing below the 200-week moving average. This is a key level we watch for the intermediate and the long term. So we'll be paying attention to see where the markets finish by the end of this week-- that would be October 21. Now, while there could be a good bounce from there, plenty of resistance is above current levels.

And remember, earning season is here. And we often see a brief rally of some relief in front of November and into the first week of the new month. So seasonal trends are definitely bullish right now. Today, I'll be watching volatility, as mentioned earlier, which has not moved much at all the last couple of days. Tomorrow, of course, is the last day of trading for the October volatility future contract. So on Wednesday morning, on the first print, November will be the will be the front month.

In addition, options expiration hits on Friday, and we have quite a few names that are going to be expiring with some big open interest as well. We do have some earnings plays coming out this week for our portfolio, which include Verizon, Elevance and Lockheed Martin tomorrow morning.

So we're looking for, possibly, some big turnover, which is big volume coming in, especially if there are some surprises on the earnings front. I should mention today that, with that big rally on Thursday and today's potentially strong rally, we have seen this reversal on a dozen or so occasions since April. This is a bear market activity, of course. And bringing in hope and faith into the buyers heads and hearts, but falling hard before those late buyers have a chance to exit.

Again, this is a bear market and should be played using that bear playbook. What does that bear playbook all about? That means holding lots of cash, some protection, which we do in the portfolio with the PSQ and the SH these are the inverse of the NASDAQ 100 and the S&P 500. And playing both sides of the market, if you're nimble enough to do that, and just simply waiting it out for more opportunities when the landscape and the environment becomes much more fertile for the bulls.

All right. That's going to be it everyone. Have a great Monday and a great week, and we'll see you tomorrow.