Stock Market Soars & Five Ways to Trade CRSP
SPY is nearing 500 and looking strong after a solid earnings week from big tech.
I thought markets were looking extended, but they proved me wrong and have been riding earnings season to new highs with SPY only 7 points away from 500.
It has been an impressive start to the year.
In one month, equities have given you the same return that fixed assets are paying out for an entire year. Roughly 4%.
And that is why I stay invested. I will also continue to trade for more upside until the trend reverses.
The line looks to be clearly drawn.
I have been talking about the communications sector since November when it broke above resistance at 69.22. These names continue to power higher, led by META and GOOGL, and show no signs of slowing.
Add in the strength shown by semiconductor stocks, which I have been pounding the table for since the start of last year, and I like how the year has started.
We are also seeing financials continue to make higher highs and higher lows.
Cap it all of with biotech, specifically ticker XBI, which has recovered from 65.00 to trade back above 85.00 and is currently consolidating.
I am expecting more consolidation after the recent big move. After that, we will have to see which direction things break and will trade accordingly.
Which brings me to CRSP and the many ways it can be traded. The 10% range it has been in since mid-December presents a lot of opportunity.
When a stock consolidates you can take advantage of the range it is trading in for as long as it remains consistent.
If you catch it just right, you can buy shares at the bottom, sell covered calls at the top, and close the calls out before a breakout takes place so you can get in on that.
To the trades! CRSP today, DKNG tomorrow!
Keep reading with a 7-day free trial
Subscribe to A Trader's Education to keep reading this post and get 7 days of free access to the full post archives.