Market has seen really good times in the first quarter of trading in 2019 as the S&P 500 index witness a 10% move to the upside.
If the market keeps this up, the annual return for this index will be astronomical amidst the already bullish market and valuation it possesses right now.
Having said that, the probability of this occurrence playing out is definitely low as the market has always been an ebb and flow condition to keep its players healthy and in check.
Breaking the market wind to blow in really soon…
Am I worried about a market crash right now? No…probably not!
But am I silly enough to believe this bullishness in the market will continue to steam roll as it currently is doing so? Of course not!
Economy in the US right now is good and nearing great, this then produces the real current concern where “when things are great, to get better they have to be excellent”.
Anything short of excellent will send the market running for the exits at least for the temporary basis where market players react faster than they actually think.
Interest rates in the US treasuries and bonds are also beginning to spot an “inverted” yield curve where in simple terms means borrowing short term pays a higher rate compared to the longer tenures. (Surely an illogical scenario…to get paid more for a shorter investment compared to a longer)
Market Updates for 15th March 2019…
Markets experienced a pause in yesterday night’s trading as the S&P 500 finished slightly down along with the Nasdaq, with only the Dow Jones spotting the opposite with a small but insignificant upmove.
Brexit continues to puzzle the market and begins to annoy as it does seem like while the people have voted to exit, the actual execution leads to the total opposite of their decisions.
US-China trade negotiations continue to play “Jack & Jill”, where the pail of water never seems to be fetched to the final destination where people want it to be to provide clarity.
So there are definitely many binary events that can turn the mood in an instant and spook the market but for now, the technology stocks, energy stocks and financials lead the strength in the market after last week small sell off.
Trade Idea for the day…
Pharmaceutical stocks have been the sector underperforming recently and this has lead to many sector related stocks with good strong fundamentals to be dragged down sharply.
We see a potential upside with this company Walgreen Boots Alliance in the coming recent weeks and will look to benefit and profit from the aftermath of the selling pressure.
While lower lows are spotted on the price chart, technical indicators do provide a divergence signal to build the case for a rebound or at least a tapering of the sell-off action in this stock.
So how can you profit from this opportunity?
There are a variety of ways:
1. Buy WBA Stock
2. Buy WBA Call Options
3. Sell WBA Put Options
4. Sell WBA IMPossible Options (IMP Graduates)
Take your prescription and each choice will lead to its own set of risk/rewards…if you are seeking a low risk/ low capital outlay/ high probability of success strategy to profit from this opportunity then find out more about how we sell options the IMPossible Investor way.
May Your Longs Go Up & Shorts Go Crashing
The IMPossible Investor
Published by Income Mastery Programme
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Any trade ideas shared is purely for educational purposes and by no means serve as a recommendation or suggestion to trade. Please seek advice from your own financial advisor before making any such decisions.
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