Hi, I’m Sean. I’m the Chief Options Strategist at All Star Charts.
2024 has been a fantastic bull market.
These are the types of markets we live for.
It’s easy to feel like we’re all pretty smart when throwing darts at the board can be and has been a winning strategy. But the real winners in 2024 were the traders and investors who knew how and when to step on the gas. And the stock market and crypto rally since the election has rewarded these market participants handsomely.
But one thing I’ve learned in my 26 years of stock market participation is that regimes always change.
Bear markets transition to bull markets. Bull markets transition to run-away markets. Hot bull markets get exhausted and the cycle repeats. And repeats again.
With this in mind, the analysts at All Star Charts have observed a few things that are raising eyebrows that may be hinting at a change of character for the stock market in the coming 6-12 months.
For one thing, we’ve noticed some trends coming under pressure. Some sectors and groups like Materials, Healthcare, Metals, Transports or even Small-Caps are challenging their breakout levels, threatening to put in failed breakouts.
We’ve also observed the U.S. Dollar index at the top of the range. It has been neither a tailwind nor headwind this year. But a breakout could change things, potentially dramatically, for stocks.
And finally, this is noteworthy. There is a potential top forming in semiconductors on both absolute and relative terms. JC has mentioned that if this top completes, the bull market is over. This has my full attention.
This means that tools and tactics we’ve employed to ride this ongoing bull will likely be required to change a bit as we head into a possibly maturing bull market.
One of the greatest aspects of being an options trader is that I have a full arsenal of weapons I can deploy for any market battleground. At my disposal, I can deploy bearish strategies that leverage investors fears in my favor. I can enter bullish trades that pay me to wait for the trends to re-assert themselves. I can even collect options premiums betting on sideways market action. And I have tools to express these ideas in both high volatility and low volatility markets.
In other words, options give me options.
I’m preparing for what’s coming next in the stock market. I’m updating my tool set. And I’m going to share it with you.
Join me live on Thursday at 2pm ET where I will lay out what I think is in store for the stock market in 2025 and what types of options strategies I’ll employ to best take advantage of the moves.
The Morning Show is about to go live. Today the guys are joined by a brand new guest, Roundhill Investments CEO Dave Mazza. They'll talk Mag 7 ETFs, the proliferation of leveraged ETFs, and more.
