A Big Picture Strategy


Here is an excerpt from the Blue Line Trading Weekend Update for Saturday, March 16, 2019. 


Big Picture Update

"The harder they come, the harder they fall".  - Jimmy Cliff

Big Picture Strategy

I've taken a small position in my longer-term accounts in the SPY January 2020 $250 Puts. They expire on January 17, 2020 (307 days). The overwhelming weight of the evidence is that the market will at a minimum test the Dec '18 lows and in all likelihood exceed them, if not for a day then for a year. Those puts closed Friday at about $6.00 on very heavy volume. They traded as high as $27.50 at the December lows (SPY = 233.76). I'm willing to wait. No stop. This trade takes the elements of time and stress out of the equation. All stock market measures fundamental, technical, and sentimental are pointing down, down, down. Ignore at your own peril. Act upon because of a preference to be in that 10% of market participants who will thrive and prosper down the rough road ahead.