Daily Option Strategy
This "never say die" market just keeps grinding higher. It has been able to shrug off any negative news and that condition will prevail until a negative catalyst materializes. Earnings are robust, the economy is solid, unemployment is low and inflation is in check. Interest rates are at a historically low level, the P/E of the S&P 500 is under 16 (with a 1.7% dividend yield) and the real estate market is soft. Equities offer the best risk/reward. If you take your lead from large corporations, they are buying back shares at an unprecedented rate. I expect this market to continue higher until interest rate move higher or earnings falter. We are due for a 2-3% pullback, but trying to time that has been a losing proposition. In the grand scheme of things, that decline will be a blip on the radar and it will set-up a buying opportunity. As we breakout, I would focus on put credit spreads. That will allow you to distance yourself from the action as the market is in a two-steps-forward/one-step-backwards mode. The market is likely to grind higher this afternoon. The bears had their chance this morning and failed. Today's chart shows that tech stocks are about to breakout. ![image](data:image/svg+xml,%3Csvg%20xmlns='http://www.w3.org/2000/svg'%20viewBox='0%200%20340%20236'%3E%3C/svg%3E)
Daily Bulletin Continues...