Showing posts with label oil prices. Show all posts
Showing posts with label oil prices. Show all posts

Friday, February 5, 2016

Current Strategies For Today's U.S. Stock Market

The current U.S. market conditions will remain volatile until there is a longer trend of higher wages, consistent job growth, low rates and low inflation.  Outside effects of China and other world markets will have little effect on U.S. based companies.  Low oil prices will also have little effect on U.S. based companies, if anything they will help bolster them. 

If you are investing long term continue to buy dips in the market using the dollar cost average strategy.  If you are day-trading options set your iron condors wide because the jumps may be large. The range on the SPY should be between 180 and 200.  Or you can sell bull puts and bull put spreads when the market goes down to capture the higher implied volatility prices.    

There is an article in Marketwatch showing the growth in jobs and wages so we are headed in the right direction but it will take some consistency to create a foundation for the volatility we are experiencing.  The middle class is the engine of our economy and if there is no fuel in the tank we can't go anywhere.



Thursday, December 11, 2014

Current Market Conditions

There seems to be a bias to the downside in the current market because of the bottoming oil price fear mongers.  I personally (and apparently many others) think low oil prices are a good thing because the general consumer has more money to spend.  Many pundits on the other hand think failing oil companies will cause loan defaults that will bring down the banks and that will somehow reach other markets.  

I don't think low oil prices are going to be a problem but the market has it's own reason for moving which may or may not coincide with my belief.  Because my current strategy is bullish I am going to proceed with caution and look to time my trades after pullbacks.