If we had a nickel for every time a guru went out on a limb and predicted a big move, well… we wouldn’t have to trade. The latest headlines have been all about the feds next announcement (likely another 25 basis points), job cuts in tech, and continuing inflation. None of which signal a continuation of this rally that kicked off at the start of the year. That said, the only truth about the market is that it does what the market wants.
Our job as traders is to look at the greatest probability. What has the greatest likelihood of happening. If we take a look at the big picture we see a clear idea of what to expect next.
On Friday we looked at the S&P throwing up a warning sign that we might be looking at a pull back. (you can check out that article here). This morning we are starting to see that today’s action will confirm that signal and give that look over the edge a shove off the cliff.
We talked about using call options on the inverted, leveraged S&P ETF SPXU. This ETF not only does the opposite of the S&P it is exaggerated by leverage so the moves are bigger.
Already this morning, those calls have jumped from .10 when we looked at them Friday to .18. If this move gets any kind of momentum those calls could jump again.
Looking at ways to exploit moves in the markets no matter the direction it is moving is key to generating consistent income from trading. If you keep reading these articles, we’ll keep sharing ways to do just that.
Keep learning and trade wisely,
John Boyer
Editor
Market Wealth Daily
PS-Here’s a big opportunity to pick up tips just like this one. Today, Wendy Kirkland is speaking live at the Online Trading Conference with 49 other presenters. click here to sign up and check it out.
Recent Comments