If you have been following along with my Weekly Market Reports then you will have noticed just how well the markets have been following the technical signals. We have been trading within a well-defined price channel that has allowed us the opportunity to collect option premium from the options we’ve sold against existing positions, and this week we will, once again, be able to collect premium to our account in an effort to lower the cost basis of the long positions we hold in our accounts. The key to success will depend on our ability to read the signals.
I am still looking for the Santa Claus rally, which usually occurs around this time of year. The broad-based indices have been looking bullish lately, and theVolatility Index (VIX) is looking overextended.
There is still a lot of time left in this year for traders, and I think the best is yet to come. The volatility in the market continues to offer us great trade ideas, and my goal is to continue to help you get a “leg up” on the market. It’s truly the reason why I love what I do, and I hope you are enjoying the information as much as I enjoy putting it all together for you. Happy Trading.
