I told you this market was nuts.
We’re still stuck in a tight channel bouncing between 17,800 and 18,100. And I’m concerned where the Dow will finally break.
We could easily pull back to less than 17,750 this week as it finds the usual overhead resistance point. I’m still not really sure what the bulls are finding to be excited about.
The economic realities are horrifying.
What I’d like to do here is trade a DIA put option to profit from a potential swing lower once we fail at overhead resistance for the eighth time.
Once we pull back to support we’ll look to jump out of the put, and into call options. We’ll just trade the insanity of the channel.
For right now, consider buying to open the DIA June 2015 179 put up to $3.60.
I’ll watch this very closely for quick exit.
Have a great week.
Ian L. Cooper
Inside Value Trader