Market Will Find Support This Week – Get Ready To Sell Bullish Put Spreads

November 9, 2015
Author: Peter Stolcers, Founder of OneOption

PLEASE CLICK HERE AND POST A REVIEW ON INVESTIMONIALS It really chafes me when some Bozo writes a bad review. I caught the decline in August and the rebound in September/October. He claims that my forecasts are about 50/50 and that most of the reviews are fake. Obviously, he does not read the blog. You know my forecasts have been spot on. Please post a review so that other traders can learn the truth and benefit from my research. Thank you for defending my research! Posted 9:45 AM ET - Last week I told you that the jobs report would be stronger-than-expected and that the market would pull back on the news. That is exactly what happened. It is a foregone conclusion that the Fed will raise rates in December. This dip will take another day or two to resolve. Bullish speculators are getting flushed out and ideally, bears are entering short positions. Once buyers return, this will spark a short covering rally and the market will make a new all-time high. Many Asset Managers are under-allocated and they did not believe that they would miss a year-end rally. If stocks start to grind higher, we will see a little panic buying. I am not looking for a massive breakout. We could see a nice little 50+ point S&P rally. I made my money trading "size" during the August decline and the rebound the last two months. I have trimmed my size by more than half and the easy money has been made. We are headed for a news vacuum. Earnings season has climaxed and mega-cap tech stocks have reported. The excitement will wane. Economic releases will be relatively light for the next few weeks. Good news will be good news and bad news will be bad news. Given the likelihood of a rate hike, we need strong economic data. I will be day trading and I will be selling out of the money put credit spreads on stocks that have broken through resistance this week. I will use the breakout as my stop. If I see late day buying with follow through the next day, I will also buy some calls. I like financials, defense and mega-cap tech. Line up your bullish candidates and get ready to buy on support. The market will test the downside this morning and I believe SPY $209 will hold. If we close on the high of the day, start gradually scaling into long positions. If the market makes a new low after a couple of hours of trading and it drifts lower, stay sidelined and wait for support. I believe this dip will be resolved in the next few days and it will set up a nice little buying opportunity. . . image

Daily Bulletin Continues...

Want Full Access?

Become a Member

Start Free Trial

No credit card required.


Previous Bulletin

November 6, 2015

Next Bulletin

November 10, 2015