The S&P 500 (SPY) slipped -0.29% to close at 763.47 while the Nasdaq 100 (QQQ) fell -1.00% to 706.32. Consumer Staples (XLP) led sectors at +1.70%, while Tech (XLK) lagged at -1.78%.
Inside tonight's sheet: 3 new orders - 2 Mean Reversion and Surge Pullback limits resting quietly below the market, waiting for Tuesday's weakness to come to them; 1 Bull-Flag Momentum trigger armed above resistance that only fire if strength shows up. One of them - LITE, tonight's free Mean Reversion setup - is open to everyone right below.
LITE - Lumentum Holdings Inc Common
Lumentum makes optical and photonic products - the lasers and high-speed optical transceivers that move data between switches and servers inside AI data centers, plus industrial lasers.
Entry limit: $758.41 - Stop: $560.57 (on a close)
Last close $830.17 (-4.2%) - volume 3.9M (20-day average 5.3M) - 52-week range $119.34 to $1,053.09 (-21% off the high) - ATR (14 days) $83.26
Mean Reversion. The most-watched names in the market get defended. This sleeve owns two doors into that bounce: a violent one-day hit inside a healthy longer-term uptrend, and a deep morning markdown on an already washed-out household name. Either way we are the standing buyer into the fear, out within days.
How we trade it
Entry: One of the market's most-watched names just took a violent one-day hit inside a healthy longer-term uptrend. Our limit waits well beneath the panic, so only truly extreme selling reaches our price.
Size: Put about 5% of your account into each name, up to 10 of them at once — the order basket lists the exact percent per name.
Exit: Sell at the NEXT MORNING'S OPEN - one of three things always ends this trade: (1) a CLOSE above the prior day's high - the bounce arrived (the level rolls forward each day); (2) a CLOSE beneath the protective stop printed on this card; (3) neither happens and the calendar ends it - sell at the open on Wednesday, September 9. For the calendar leg, set a dated market-on-open sell for that date.
Risk: Abandon the trade on a CLOSE beneath $560.57 - the sale goes off at the next morning's open. A break that deep says the bounce thesis is wrong, so we do not argue with it.