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Why You Shouldn’t Write Off the Bull Market Yet

Why You Shouldn’t Write Off the Bull Market Yet

Posted On January 7, 2021 3:00 pm
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Tuesday we talked about the volatility of this market.  

Monday we had a 365-point drop in the Dow, and we closed off the lows for the day.  We also saw a spike in the VIX to a 2-month high of 28.  

Tuesday was a pretty calm day in the markets…

Then Wednesday and now today the markets are bouncing back.  

Monday saw a 441 pt jump in the Dow, and as I write this we are up 271 pts on the day.  

So despite Monday’s sell-off and the corresponding spike in the VIX…

The market shrugged it off and just kept marching on.    

Leverage the Market Gains Without Taking Huge Risks!

Here’s my point, traders who thought Monday was the beginning of “the crash” that all the talking heads are crowing about are missing out on some nice gains in the market right now. 

That’s why we can’t be too ready to dismiss the bull market. 

Will it end?  Of course, it always does. 

But when will that be?  

We don’t know, and trying to predict it is what my father would have called a “fool’s errand.”

Remember, my father was a premium collecting mad man.  He took risks that would keep me up at night.  

So we will continue to do what we do in Options360.  We will leverage the bull market by making cautious trades with limited and predetermined downsides. 

That’s how we delivered a 48% return last year, and how we have beat the S&P every year since we launched. 

If you haven’t claimed your trial subscription, make sure you claim it now.

To Your Success,

Steve.

About author

Steve Smith
Steve Smith

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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