By: Steve Smith
Yesterday, I pointed out why the market is up so much on the week, even though the presidential election is still up in the air.
Just to recap:
- It looks like Congress is going to be deadlocked, no matter who the president is. Deadlock means status quo…and the market likes the status quo,
- A Covid vaccine seems imminent. Even though there is a second wave starting in Europe, it looks like it is less deadly than the first wave and the market seems to think a vaccine is right around the corner.
- $140 billion a month and 0% rates. The Fed has promised to keep the spigot on for the foreseeable future. With bonds paying nothing the only place for money to go is into stocks.
- Now that the market is surging, institutional investors are unwinding hedges and going long again.
All of that points to the bulls getting off their duff and running again.
Notice, however, nothing in that list has to do with better fundamentals or the economy getting better.
It is, slightly, but the economy is nowhere near as strong as it was pre-Covid.
That means we need to take advantage of the market surge without sticking our necks out too far.
As always, it’s about managing our positions…
Not just buying anything that seems to be going up.
That’s why Options360 members enjoy consistent marketing beating returns year in and year out.
We profit on the way up, and we profit on the way down…
And we protect ourselves all the time.
It’s time for you to take advantage of our early Black Friday blowout. You can try Options360 for just $19!
Now is the time…
To Your Success,
PS. You get everything, including the members-only webinars, personal email access to me, and my trade recommendations all for $19.
Steve Smith have been involved in all facets of the investment industry in a variety of roles ranging from speculator, educator, manager and advisor. This has taken him from the trading floors of Chicago to hedge funds on Wall Street to the world online. From 1987 to 1996, he served as a market maker at the Chicago Board of Options Exchange (CBOE) and Chicago Board of Trade (CBOT). From 1997 to 2007, he was a Senior Columnist and Managing Editor for TheStreet.com, handling their Option Alert and Short Report newsletters. The Option Alert was awarded the MIN “best business newsletter” in 2006. From 2009 to 2013, Smith was a Senior Columnist and Managing Editor for Minyanville’s OptionSmith newsletter, as well as a Risk Manager Consultant for New Vernon Capital LLC. Smith acted as an advisor to build models and option strategies to reduce portfolio exposure and enhance returns for the four main funds. Since 2015, he has worked for Adam Mesh Trading Group. There, he has managed Options360 and Earning 360, been co-leader of Option Academy, and contributed to The Option Specialist website.
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