The game plan in the markets over the past several quarters has been to buy the dip whenever the S&P 500 approached its 50-day moving average of prices.
So naturally, I spent the weekend thinking about some long trades that I wanted to put on today — thinking the same old game plan was likely to continue.
Then I woke up to S&P Futures showing the largest gap down opening we’ve seen in a while and $SPY indicated to open significantly below its 50-day moving average for the first time in seemingly forever.
In other words, the market was telling me to rethink my bullish ideas.
For access to JC and Sean’s options strategies, you must be a premium member of All Star Options. Please login below or start your risk-free 30 day trial today.