The longer the market trades in a range, the stronger the breakout is when it occurs. The S&P 500 has setup a very similar topping pattern this month as it did in August before a rapid and steep sell off. John Nyaradi of www.wall-street-sector-selector.com, created a nice chart showing this in an article he wrote on SeekingAlpha.com: As you can see the topping patterns are very similar including the Full Stochastics being overbought. However, this time, the RSI has been even more … [Read more...]
Today I’m Buying Puts on the S&P 500 ETF SPY
Last week I opened my first ROTH IRA with OptionsHouse. Because I'm self-employed, the ROTH IRA is one of the best choices I have for a retirement account. No matter how much the money grows in a ROTH IRA, withdrawals are non-taxable. Today I will buy deep in the money put options (if my wire transfer arrives before market close). Last Friday I posted a few reasons the market might drop. Today, I still feel this has been a sucker's rally. My downside targets … [Read more...]
