April 28, 2017

Back in Action…Market Opportunities

The one aspect of trading that most investors don’t understand….patience.

The newsletter business and its patrons insist that we provide ideas, trades, investments on a regularly scheduled basis. You know, every Tuesday we will provide a trade alert. Or the third Friday of every month we will send you our monthly update with our current stock pick. It’s ludicrous. And if you think the market provides opportunities on a regularly scheduled basis, well, you probably should put your money elsewhere because you don’t understand the market.

Cash is a position.

It’s one of the hardest aspects for new traders/investors to learn. But once learned, it can be one of the most valuable lessons the market has to offer.

As Warren Buffett famously stated, “the stock market is designed to transfer money from the active to the patient”.

As some of you know, I have been patiently waiting on the sidelines for the market to provide a few decent opportunities. The low volatility environment (as seen by the VIX) as well as a month-long trading range makes it difficult for those of us who trade off of short to intermediate-term market extremes. But the situation has changed. Opportunities are presenting themselves once again and as a result I intend to take a few new positions over the coming days.

For instance, the major indices are offering a few interesting set-ups.

 

 

 

 

 

 

 

 

 

Just look at the SPY chart above.

In my opinion, the recent highs should act as a good area of overhead resistance.Not only that but we are entering into a seasonally weak period in the market. Sell in May is right around the corner coupled with the typical weakness that follows options expiration.

As a result, I am looking at a few bear call spreads. So, subscribers stay tuned! A few long awaited trades are coming your way!!!

If you haven’t, join my Twitter feed or Facebook.

If you are a believer in a statistical approach towards investing please do not hesitate to try one of my options strategies. I use simple mean-reversion coupled with probabilities for each and every trade. Give it a try, it’s free for 30 days.

  • Brice Hogan

    HI Andrew,

    I couldn’t agree any more about he patience point in your article, most options traders pull things off to quick, but it pays to be patient

    I saw your blog posted through seeking alpha and I wanted to get in contact with you by email.

    I own Traderminute.com and I have been trying to see how I could get a hold of you but I don’t have an email address, to talk about some business development ideas.

    Feel free to email me at cmttrader@live.com would love to talk

    Thanks

    Brice