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My overall opinion on this market is bearish. Short term. It’s parabolic and we’re at price levels where I’m fairly confident that a correction is due. Not “end of the world” just statistically normal. Long term this is still a massive bull run and there isn’t enough evidence to justify that “the” top is just around the corner.<\/p>\n
For reference, a 3% correction off the highs is 2785. Just 3%. Traders will think it’s the end of the world when in fact it’s just run of the mill reversion.<\/p>\n
The rotation game is still in play so it’s best to look for risk reward on individual dips.<\/p>\n
Trade #1: CAT<\/p>\n
![\"\"](\"https:\/\/trades.iwopremium.com\/wp-content\/uploads\/2018\/01\/img_5a6f7f7323e94.png\")
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The “global growth” theme helped the stock run over 20% in about a month, and their earnings numbers were massive. But they were priced in. We’re now seeing some giveback post earnings, which is fine. Anything into 160 is going to be a good trade.<\/p>\n
Trade Setup<\/strong><\/p>\n Expected Price: 160<\/p>\n Sell to Open CAT Mar 145\/140 Put Spread<\/strong><\/p>\n Tier 1: Enter at 0.60, Exit at 0.10<\/p>\n Tier 2: Enter at 0.90, Exit at 0.40<\/p>\n Tier 3: Enter at 1.20, Exit at 0.70<\/p>\n Trade #2: AAPL<\/p>\n AAPL is the lone stock that did not run this month. Whispers of bad sales numbers and other things are probably getting priced in ahead of earnings. I like getting long small on this dip and wider scaling in through earnings.<\/p>\n Trade Setup<\/strong><\/p>\n Expected Price: 168.31<\/p>\n Sell to Open AAPL Mar 150\/145 Put Spread<\/strong><\/p>\n Tier 1: Enter at 0.55, Exit at 0.05<\/p>\n Tier 2: Enter at 0.95, Exit at 0.40<\/p>\n No Tier 3 Until After Earnings<\/p>\n <\/p>\n","protected":false},"excerpt":{"rendered":" My overall opinion on this market is bearish. Short term. It’s parabolic and we’re at price levels where I’m fairly confident that a correction is due. Not “end of the world” just statistically normal. Long term this is still a massive bull run and there isn’t enough evidence to justify that “the” top is just […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_bbp_topic_count":0,"_bbp_reply_count":0,"_bbp_total_topic_count":0,"_bbp_total_reply_count":0,"_bbp_voice_count":0,"_bbp_anonymous_reply_count":0,"_bbp_topic_count_hidden":0,"_bbp_reply_count_hidden":0,"_bbp_forum_subforum_count":0,"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":""},"categories":[24],"tags":[],"_links":{"self":[{"href":"https:\/\/trades.iwopremium.com\/wp-json\/wp\/v2\/posts\/10329"}],"collection":[{"href":"https:\/\/trades.iwopremium.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/trades.iwopremium.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/trades.iwopremium.com\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/trades.iwopremium.com\/wp-json\/wp\/v2\/comments?post=10329"}],"version-history":[{"count":3,"href":"https:\/\/trades.iwopremium.com\/wp-json\/wp\/v2\/posts\/10329\/revisions"}],"predecessor-version":[{"id":10335,"href":"https:\/\/trades.iwopremium.com\/wp-json\/wp\/v2\/posts\/10329\/revisions\/10335"}],"wp:attachment":[{"href":"https:\/\/trades.iwopremium.com\/wp-json\/wp\/v2\/media?parent=10329"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/trades.iwopremium.com\/wp-json\/wp\/v2\/categories?post=10329"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/trades.iwopremium.com\/wp-json\/wp\/v2\/tags?post=10329"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}![\"\"](\"https:\/\/trades.iwopremium.com\/wp-content\/uploads\/2018\/01\/img_5a6f80078d52b.png\")
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