With a three day weekend upon us I am reluctant to send out any further short-term trades, absent some special situation that may arise over today or tomorrow. Based on April-May trade performance, that is a good thing. The market indices are all in the their way approaching a crossroads where either the long anticipated next leg down will assert itself, or the indices will confirm a V shaped bottom in late March and it's off to the races higher. My analysis is as clear as it has ever been, that new leg will be lower. In either case trading shorter-term options 6-8 weeks out will be the sweet spot for the kinds of gains realized in February-March. Do not underestimate the geopolitical hostilities brewing across the globe, the effect of what will surely be a highly contested and acrimonious election in November, and what can only be likened to a dot.com mania in the face of a shattered economy. Today, tomorrow, next Monday, this market going into Memorial Day weekend does not reflect any of it. That spells O-P-P-O-R-T-U-N-I-T-Y. Finally, my trends and channels are set-up on all time frames. When and if they start breaking, the Trade Alerts will be flowing, so look for them.
