Bears Stop Skid, Looking for More

9:00am (EST)

(Subscribers, make sure you check the Members Area this morning for the 5 charts we are profiling. There could be a trade shortly after the open if we can get good prices)

The bulls did their best to extend their winning streak to 4 sessions but the action from Tuesday was the clear tell that the market might be peaking. The bulls tested the first layer of resistance at the open despite shaky economic news here at home and some back peddling in the overseas markets. The bears waited patiently for Europe’s markets to close and soon after lunch the bulls started seeing red.

We were actually surprised to see futures trading higher Wednesday morning but we were glad because we were looking for a pullback. We had two juicy looking put option trades we wanted to recommend and a pop higher to start was a bonus package. Although our longer-term outlook is still bullish, it just feels like the bears are going to do a little damage in October, if not sooner, and we wanted to take advantage of a possible pullback.

Besides, in this type of volatile environment, both call and put options have been working well. The bottom line is we have been telling you this is going to be a great time to trade and the pivot points have been working like a roadmap.

Yesterday’s action was text book as the selling pressure picked up into the close which left the market at session lows with fat losses…

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Bears Stop Skid, Looking for More

CFTC Disclosure: