When we left off last week, I indicated that this week would be an important one because we have a major inflection point due ideally Friday May 17. Of course there is a window around the ideal inflection point, so essentially we start the watch as we start trading Thursday. I think it is very likely that we are looking for a high to form. I think the next correction will be deeper and longer than the correction off the March highs. Subscribers are short Las Vegas Sands from the beginning of the week and comfortably ahead. I will be looking to add some other shorts to this initial position. If you give yourself enough time, you can pick up some cheap put options and just wait.

In the event I am wrong then the extra time on option expiration will help mitigate any loss. Though I would be surprised if we are not lower then we are now by this time next week. The SP 500 futures are up 11 days in a row and hitting the top of the channel in the attached chart. While absolutely anything can happen in the stock market, this is a window for shorts coming up imminently in my opinion. Some puts with time to expiry would in the majority of occasions similar to now, yield a satisfactory profit outcome. But again “majority of occasions” is not a guarantee of anything, so proceed prudently if you do.