Sell Bullish Put Spreads and Buy Bullish Call Spreads – SPY $200 Is the Target

CLICK HERE AND WATCH US MAKE A KILLING TODAY Posted 9:30 AM ET - Wednesday the market tested the lows from August and we witnessed a sharp intraday reversal off of SPY $182 on extreme volume. Yesterday we saw follow-through buying and the gains held throughout the day. Stocks are trading higher before the open and the capitulation low is in. Buyers will be engaged ahead of major earnings announcements. Now that support has been established, the bid will strengthen and confidence will be restored. After a nasty decline the last few weeks, we can expect an aftershock or two. This is a very high probability event and you should get long. Call premiums are expensive and you need to adjust your strategy. I suggest selling out of the money bullish put spreads and using the proceeds to purchase bullish call spreads. You will be selling expensive premium and buying it. The two will offset. I will be selling bullish put spreads on strong companies after they announced earnings. I will also be looking for companies that announce in a couple of weeks. I want to be able to hold the position next week and I don't want to hold over the number. China's economic releases have been decent and the ECB's rhetoric was dovish yesterday. The pieces are in place for a nice rally. I believe the market will reach SPY $200 in the next two weeks and that is my target. This is a fantastic opportunity, don't miss it. Swing traders can finally take action and this move should last a couple of weeks. I suggest scaling in. There will be aftershocks and you'll be able to add on those dips. Expect to take a little heat along the way. On a longer-term basis, my bias is bearish. . .

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