The worst possible scenario for bears is unfolding this week. It is not just the market is sneaking ahead, but that it is doing it with rotation. Rotation simply means that as one sector pauses another picks up the velocity and the market averages continue higher. There will be some pullbacks, and I mean by that a pullback in the neighborhood of 10 SPY points. So nothing big…. buy the small dips in June!
We have been stalking Crude Oil for a while, and got involved on the long side Monday. The best pure oil play is Devon Energy. Option pricing is reasonable and there are spread opportunities to buy long dated in the money calls, while selling short dated calls a little bit out of the money.
Lots of opportunity in June!
Thanks,
Joe

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