Believe it or not, there isn't a bull market EVERYwhere. Of course, if you give yourself a steady diet of SHOUT!TV! then this is not a surprise to you because everything is bearish (on TV).
As we begin the last leg of 2019 into the holidays, trading often gets a little uneventful (last year being a MAJOR exception). Feels to me a great time to be putting some delta-neutral income trades on.
It's been an epic trip to India and Japan for the All Star Charts team, so sorry for the decreased frequency of trade ideas during the past week. We're on a plane now headed back to the U.S. and JC and I were chatting between in-flight meals (10 hour flight from Tokyo!) about some opportunities we're seeing out our windows from 30,000 feet over the Pacific Ocean.
One such area that has our attention is the US Healthcare Providers space. Earlier in the week, our boy Bruni published a piece featuring a bunch of stocks to watch here.
The one stock that most caught my eye was one setting up for a hundred-dollar-roll and all-time highs.
There might not be a bull market everywhere. It seems interest rates are taking a breather here and deciding their next move. And while they consolidate, options markets are currently pricing in some elevated premiums that are pretty tempting to sell if you're a believer in options volatility mean reversion (I am!).
Today we’re looking at Financials pushing up against their historic 2007 highs for the 3rd time.
The way I learned it was that the more times a level is tested the higher the likelihood that it breaks through. I don’t know if this is going to be it, or if it will take a 4th or a 5th test. But I do think there is a blog post coming soon where we’re looking at Financials at all-time price highs.
Meanwhile, on a total return basis, Financials are already making new all-time highs this week.
Looking at these charts, it is hard not to be enthusiastic about the potential for a major breakout in this sector:
