Sell Your Calls Now – Take Profits Before the FOMC – Webinar Wed

LET'S FIND SOME TRADES - FREE WEBINAR WED - REGISTER NOW Posted 9:30 AM ET - Yesterday the market took a breather after a big run last week. The SPY finished lower and the opening this morning is soft. Apple will post earnings after the close and the excitement will wane as we enter the back half of Q3 earnings. For the last few days I have been telling you to scale out of long positions. Take Profits Now! The upside is very limited and resistance at the all-time high is strong. I've seen more selling in the last few months that I've seen in years. We can expect a fair dose of profit-taking and the headwinds will be strong. We could see considerable downside if the Fed flexes its muscles tomorrow. They desperately want to hike rates and they will keep the market guessing. Improving labor conditions and stability in China might give them the confidence to raise rates in December. I still think this is unlikely, but it's what the market thinks that is important. The debt ceiling needs to be raised by November 3rd. That deadline is approaching quickly and politicians will wait till the last second. This will create anxiety. I will sell out of the money call credit spreads on weak stocks that have posted earnings if the SPY closes below the 200-day moving average. I will by puts if the market closes below the 100-day moving average. I hate getting short into year-end because I am fighting seasonal strength. However, if technical damage is done, I will jump on the move. A drop below the 200-day moving average will flush bullish speculators out and Asset Managers will pull bids. If this happens, the 100-Day MA will instantly be in play. Let the FOMC play out. When the dust settles we will know how to position ourselves. Take profits on long positions. . .

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