My way of trading when feeling bearish but not 100% sure is to sell out of the money call options. You can sell 133-135 weekly calls. If you are so sure you can sell at the money call. Here is the hard reality. People (market) is loaded with cash and most of it is on the sidelines and are really looking for income. CD and bond do not provide such an income so money is chasing risky assets and do not want to be left behind. If market drops 3%, investors see it as a bottom and buying opportunity. If we did not have sideline money issue, we had more chance of a real crash but now we might see only a minor correction and thats it.
That is a good point and typically a good way to play this market (even when it goes thru it's down cycles)...i.e. the structure of the market is parabolic out of the lows and "rolling chop" into the lows (been that way aside from the Jan-Feb meltdown) for quite awhile.
I'm LOOKING AT TF and the MACD on the dailies is near 30..I went back pretty far and I see that its never been this high..am I reading it wrong..my charting no GOODA !?
$SPY Pullback is an opportunity to protect $QQQ$IWM short call side on debit/credit spreads from Dec 16 divy risk, front or back month.