The stock market continues in a broad two way range. Expect a lot more of this in 2025. The SPY rallied off the lows Tuesday, and whether those lows hold or not in the short term likely depends on Nvidia earnings after the close Wednesday. The way Nvidia stock is trading I do not believe it rallies afterwards based on earnings or guidance. The flow, or rather my interpretation of the flow, cannot always predict unknown event risk, but it is not constructive in my opinion. So that leaves Tuesday’s low in the market averages vulnerable if not this week then next. 

I mentioned DELL last time, and I did try to get short there via puts but ultimately (and so far unfortunately) didn’t get filled as the stock is down about $7 the last 2 days. Lastly, the option premium in the SPY is very large, reflecting recent volatility. This is a good environment to be long far dated options, whilst writing short dated against them. This strategy has served well the last month and I continue to employ it for subscribers with very good success. 

Thanks,

Joe