Is This A Top? Plus A Nice Option Trade

Posted by Joe Duffy | Dec 14, 2023 | Joe Duffy's Trading Advantage | 0 |

If I was starting to see red flags about the market health yesterday it didn’t get any better today. Everything that has happened in this 7 week rally I warned about in this space. Now it’s come to pass. It’s not the time to get bullish now. There is absolutely no way I have any interest in being long now. I tried two trades today. I was successful in buying Starbux puts with the stock at $98.00. See the attached chart.

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The stock is in an area where it has rejected numerous times, and its relative strength to the SP 500 is abysmal. I marginally missed long calls on Newmont Mining, a gold play when the stock was at $38.90. The Newmont options ended 30% higher then my attempted buy price, so not chasing. The Starbux put options are right where I got them. I suspect Thursday or Friday may well be the top for a bit in the general market.

Thanks,

Joe

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Joe Duffy

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