Option put spreads appear to be the best strategy in these market conditions. The indexes continue to trade lower, staying below the T-line. Option put spreads allow for taking advantage of continued down trending stock positions even after extended down moves. All the indexes currently are trading below the T line and have not shown any evidence of candlestick reversal signals. The trading strategy remains the same, stay predominately short but there are some good bullish sectors in progress. The lithium mining stocks are trading stronger and the energy stocks continue their uptrend. This allows investors to have both long and short positions in the portfolio.
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Good Investing,
Stephen Bigalow.
