What a year it’s been. Year to date, the Dow has tacked on nearly 23% of upside in 2019, with the S&P 500 up 29%. The NASDAQ is up nearly 36%. We may see even more upside as U.S. China tensions begin to cool off. However, don’t expect much market action these next two days. Trading volume will be thin with 2019 wrapping up.
As we head into the New Year, you may want to consider hedging for downside. After quite a run, the Dow Jones, for example, has become greatly overbought at its upper Bollinger Band (2,20), with over-extensions on RSI, MACD, and on Williams’ %R (W%R). We must also consider that we’re likely to see tremendous volatility late next year with the presidential elections. There are three ways to prep for volatility with the UVXY, TVIX, and VXX.
This is just one of the opportunities we find quite often inside
Extreme Option Profits.
To you and yours, have a happy, healthy, and profitable New Year 2020.