Lance’s weekly update has a very interesting data set that I assumed was true, but had not seen it so easily / clearly described. I am leaning toward another longer term position in SPY Puts …
Here is the data set – “copied”
However, with the ongoing trade war rhetoric brewing between China and the U.S., a negative surprise certainly maintains a high enough probability to pay attention to.
As I noted over the last few weeks, participation remains concerning as Bob Farrell’s rule #7 states:
“Markets are strongest when they are broad and weakest when they narrow to a handful of blue-chip names.”
For the year, 10 stocks have made up almost entirely all of the gains of the market. Actually, a better way would be to say:
“The top-10 stocks have more than offset the losses from the rest of constituents so far this year given the markets are only up 3.22% ytd.”