Filthy Rich: Dirt Poor

The Super Technical Indicator That Says the S&P 500 Could Enter a New Bull Market Today

June 7th, 2023

The Super Technical Indicator That Says the S&P 500 Could Enter a New Bull Market Today

Greetings from Traverse City, Michigan, where we just wrapped up our two-day Millionaire’s Trading Club intensive live trading seminar! Jeff Wood is hitting the road to get home and my flight was delayed, so I’m coming to you with an abbreviated Filthy Rich, Dirt Poor.

I’m Emily Norris, Managing Editor of Options Income, Income Masters and Perpetual Income.

The S&P 500 is approaching a bull market, but it’s taking its sweet time. According to Bespoke, the last time it took this long for the index to enter a new bull market was in the late 1950s.

Of course, we knew that Tuesday wouldn’t be the day. The indicator we used to determine this was the super technical “Trader’s Reserve Event Indicator.” That is, anytime we hold a live event, the market… doesn’t cooperate.

Not cooperating ranges from the COVID-19 shutdown crash in March 2020 following an Investor’s Blueprint Live to the meh day that we experienced Tuesday.

Yet, with the market down in the morning, two of our Options Income positions bucked the trend, trading strong out of the gate.

They were footwear maker Crocs (CROX) and sporting goods retailer DICK’S Sporting Goods (DKS), both of which we closed Tuesday morning for nice profits.

This was our 11th winning trade in a row on CROX since we began trading it back in October 2020 as a post-pandemic winner. In total, we’ve generated $1,012 in income by selling options on the stock.

But the trade I want to look at a bit closer is a name that’s new to the Options Income universe: DKS.

The stock was actually brought to our attention as a potential income opportunity by a member during a live trading session.

After reviewing the stock, we decided it looked like a good candidate for selling options. So, on June 1, we sold the DKS 16 Jun 120 Put for $1.25, or $125 per contract. At the time, we told members we would likely look to close the position early if the premium dropped to around $0.40.

While the market opened lower Tuesday morning, the stock popped more than 2% by 10 a.m. Eastern. Meanwhile, the premium on the put we sold dropped to around $0.25.

We recommended members close the trade, booking a profit of $1, or $100 per contract, for a 0.8% return in five days on the $12,000 per contract we put up to secure the put.

While the stock continued higher, and we could have gotten out at a lower price later in the day, no one ever went broke taking a profit! That’s something Jeff stressed at our trading seminar this week.

We will be keeping a close eye on DKS for more potential trades. And now that our conference is over, perhaps we’ll get an up day today and the S&P 500 will finally enter that bull market it’s been flirting with.

If you have any questions, comments, or anythidng we can help with, reach us at any time.Email: [email protected]
Phone: (866) 257-3008

Emily Norris

Managing Editor
Traders Reserve

Any trade or trade idea discussed is for educational purposes only.  They will not be tracked as an official trade recommendation. 


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