Hi Everyone. Just a quick note to say that straddles are looking a bit on the pricey side again this earnings season, so it’s a good idea to stick to what we know works nearly all the time … ie just trade the flag patterns long and short as in all the Flag blogs here.
Flags work best when we have a clear sense of where the market is headed. Back in March I mentioned that down was the more likely direction, and that has been borne out so far. However, at times, the market decides to stall, think and sometimes even retrace the other way with some force. That seems to be the case right now, but over the short to medium term I’ll be looking more at the bear flags for sure, unless the market tells me otherwise. Of course I’ll be giving you my thoughts on that one as we go along.
Good progress is being made with the testing of the new site, and the deployment of the new Flag-Trader videos, so stay tuned … it’s only a matter of days (not months!) now!
All the best