A week ago we noticed that traders were looking to close out losers and bury this year in a grave of losses for tax benefits. (Check it out here) The VIX was giving us a clue about what to expect and then the reaction to the fed sealed the deal. From the looks of things this morning, this base jump to the end of the year isn’t done yet.
The call options we looked at still have potential to take off and are a smart way to boost the opportunity to be had from this final plunge of the year.
If you are looking for ways to spot when momentum is about to shift, check out Lee Gettess’ approach to identifying stocks that are exhausted and ready to reverse. You can check it out here.
Keep learning and trade wisely,
Market Wealth Daily