Stocks took a breather

We’ve been talking about it since last week, stocks taking a breather here, and can you blame them? The first line of Support for the S+P 500 is now at the 5,580 area.. That is a very thin line there my trader friends, and not for the unprepared or the faint of heart. A more stable Support level falls down to the 5,560 area, below that gloves are off.

This pause or potential pullback is most likely short term in our longer term bullish outlook. The Bears did do some buying today, they did, not super mega heavy like 5 weeks ago but a slight bit. We will need to rise above 5,600 with conviction for the trend to continue with any near term strength.

Options traders, you often hear us here at investingwithfaith.com speak about Verticals for both income generation and creating safer plays in times of higher Volatility. We did those today, and thankfully so. Especially on TSLA where we had the 225 / 230 Bull Call Spreads. Our loss per contract was only $12.00. Had we of bought blind calls only we would of lost $250.00, per contract… See the difference? Those Vertical plays will be a big part when we offer our premium service. Different than greed isn’t it? Most want to tell you how much you can make, We’re sharing how not to lose it.

Fed Minutes come out tomorrow, we will be playing close to the vest until we get clear signals.

Invest wisely, live charitably and be well

Brother Bill