Both the S & P 500 and Dow Industrials are near their yearly highs. However, technical indicators are roughly neutral short-term, although the market may pullback next week, and then rise into the new quarter, the 4th of July holiday, and earnings reports in July. If there's a market pullback next week, OIH (oil ETF) puts may be a better trade, since OIH is overbought and volatile (see three-year weekly chart below). Perhaps, OIH Jul 175 or 170 puts are best for next week.
Chart courtesy of StockCharts.com
Arthur Albert Eckart is the founder and owner of PeakTrader. Arthur has worked for commercial banks, e.g. Wells Fargo, Banc One, and First Commerce Technologies, during the 1980s and 1990s. He has also worked for Janus Funds from 1999-00. Arthur Eckart has a BA & MA in Economics from the University of Colorado. He has worked on options portfolio optimization since 1998.
Mr Eckart has developed a comprehensive trading methodology using economics, portfolio optimization, and technical analysis to maximize return and minimize risk at the same time and over time. This methodology has resulted in excellent returns with low risk over the past four years.
