Where is the Stock Market Going?

Where is the Stock Market Going from here?  That’s a good question.  A question that no one really knows.  You can listen to all of the talking heads on CNBC, Bloomberg, etc…. but if you followed these talking heads on their market opinion, you would have lost money.  Most financial guest on TV think we are going lower.  They told us that we will test the lows.  Even go lower than the lows.  They told us to sell here.  After all of the sell readerick, the Nasdaq is only 7% away from it’s all time highs.  At the rate of the up days in this market.  the Nasdaq can be there in 2-3 days.

So where do we go I think?  Nowhere.  I really think that the market will just gyrate between the 50% and 61.8% fibs.  That’s basically between 2800 and 2942 respectively on the SPX index.

Until there is a vaccine or until there is evidence that there will not be a rise in the death rate as the economy reopens, I feel the market can do anything.   It’s basically just waiting for more information.  This may be a perfect market to sell Iron Condors for income.

While the stock market figures out what it wants to do, we can collect theta off of options by selling them.  Remember, 80-90 percent of all options expire worthless, so let’s make use of that and sell the options to the people that are speculating on stock market movement.  I think that is the best play for the current enviroment.

Now I need to take my own advice, because I mainly sell puts only by using credit spreads.  Why, because I suck at Iron Condors and they move to slowly for me, but it doesn’t mean I don’t like them.  I have one on right now as we speak.  I show you an update of the position in this video.

So check it out and be sure to share your thoughts in the comments or hit me up on twitter @dretrades