Portfolio Protection

Today, Wednesday January 3rd, the US market is continuing to trade higher. Market had been trading sideways for the last 2 weeks in December of 2017 and trading volume was much lower because of the holidays. Institutional buyers have come out with full force when the market opened up on Tuesday after the long 3 day weekend holidays. Lots of stocks are showing signs of breaking out from their resistance lines this morning. Some of those stocks are getting extended but may offer a short term opportunity to add to your positions if you have already made some profits in the stock.

Here are those stocks:

$OLED, $HTHT, $YY, $FIVE, $THO, $NVDA,$NVR, $KBH, $LEN, $DHI, $VALE, $URI. $NFLX, $TREE, $WLK, $HFC,$TEAM,

$VIX is currently trading around $9.20. It has traded as low as $8.84 in 2017. This would be an opportune time to consider doing an option trade to protect your portfolio. 2018 will have some volatility and will not be as smooth sailing as we did in 2017. Market has not corrected more than -3% in 2017. February traditionally has been a poor performing month in the US markets. $SPY, $QQQ and $DJI has been trading at the upper bollinger band for the entire month of December. $DJI has traded as long as 8 weeks at the upper bollinger bands in 2017 before snapping back with a correction. $VIX has spiked as high as $14.51 on Aug 11th (we had distribution days on Aug 10th and again a week later on Aug 17th on the $SPY as well as $NASDAQ). That is a spike of +57% to +88%

WOW! WOW! WOW!

Is this an opportunity or what?

Happy Trading!

Amin