Bear Market and Corrections

Bear Market Strategies for profit, protection and income.

Spy Put Trading Strategy With The Williams %R Oscillator Dramatically Improves Profits and Protection

Categories: Bear Market and Corrections, Investor Questions, SPY PUT (SPY)

Spy Put Trading Strategy With The Williams %R Oscillator Dramatically Improves Profits and Protection

2013 marks the 20th year that I have used the SPY ETF in combination with the Ultimate Oscillator to profit from market direction weakness and downturn. Many investors have written to me over the past couple of weeks wondering how to set up their Spy Put Options for trading when they do not have the Ultimate Oscillator available from their discount broker. Other investors have written that they cannot change the Ultimate Oscillator Settings within their charting software to match my settings making profiting from…

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Spy Put And The Importance Of The Split

Categories: Bear Market and Corrections, SPY PUT (SPY)

Spy Put And The Importance Of The Split

I wrote a number of articles yesterday (June 24) on the Spy Put Options trade I was involved in. I bought 150 Spy Put Options per the 2013 trades I detailed out here in my Spy Put Options chart for this year. The timing of the purchase was perfect for my strategy but the market direction did not co-operate. Yesterday the market direction plunged lower after I purchased my Spy Put Options but then after two unsuccessful attempts to push lower, investors bought into the…

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Spy Put Options Swap To Maximize Gains

Categories: Bear Market and Corrections, SPY PUT (SPY)

Spy Put Options Swap To Maximize Gains

This is a FullyInformed Members strategy article studying the Spy Put Options Strategy to assist readers in learning how to maximize their gains in the Spy Put Options strategy when the market direction remains clearly lower. This strategy article discusses the importance of understanding the valuations of the SPY ETF and how it affects the returns from holding the Spy Put Options themselves and why it is important. This article shows investors a simple strategy to continue to grow potential returns in order to maximize…

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Market Direction Outlook is Lower – Learn To Profit From Corrections

Categories: Bear Market and Corrections, Stock Market Outlook

Market Direction Outlook is Lower – Learn To Profit From Corrections

The move lower again today once more caught a lot of investors off guard as it seemed at the open as if the market direction was going to push higher. In fact a lot of investors have been caught in this last rally from Friday and Monday as they felt it had the potential to recover the lost momentum and push back towards the new highs. If you were among those who were trading with the belief the market direction was strong enough to move…

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Spy Put Options For Gap Down Opening

Categories: Bear Market and Corrections, SPY PUT (SPY)

Spy Put Options For Gap Down Opening

This is a FullyInformed Members strategy article studying the Spy Put Options Strategy to assist readers in improving their profits and understanding when and how to trade during choppy markets like today (June 11 2013) .As regular readers know I use the Spy Put Options to take advantage of downturns in the market direction. The results can be excellent if the trades are conducted properly. I only trade within the Spy Put Options when the trend is definitely lower. This morning (June 11 2013) market…

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Market Direction Downturns – 5 Steps To Build Confidence To Trade Them

Categories: Bear Market and Corrections, Investor Questions

Market Direction Downturns – 5 Steps To Build Confidence To Trade Them

As readers know, the Spy Put Options remain my favorite method to trade against market direction corrections. Today’s downturn returned some of the largest profits to date for my Spy Put Options trade strategy. All of this is only possible through having the confidence to trade the downturn in stocks. Trading downturns though is extremely difficult for most investors as we are all taught to buy an asset and watch it appreciate in value. Yet some of the best profits can be made when stock…

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Market Direction and Spotting the Next Great Bear Market

Categories: Bear Market and Corrections, Stock Market Outlook

Market Direction and Spotting the Next Great Bear Market

This is a FullyInformed Members article. With the stock markets sitting at all new highs and now entering a corrective phase, investors worry about the next bear market. Indeed from the stack of emails I have been receiving, many investors are worried that the next great bear market may be just around the corner. To that end let’s look at a few signals every investor can watch for that will alert them when they should prepare for the arrival of the great bear. One of…

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Hedging For Profits and Protection

Categories: Bear Market and Corrections, Selling Put Options

Hedging For Profits and Protection

A lot of investors believe that to hedge a portfolio requires complex calculations. They also believe that options and a variety of positions must be put in place and held mid-term to even possibly long-term to “properly hedge” a portfolio. Nothing could be further from the truth. Many investors also believe that hedging is like insurance – it costs money to protect a portfolio. A lot of financial planners will advise clients that just like insurance hedging is a cost that is necessary to protect…

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Why Remembering The Lehman Brothers Collapse Is Important To Stocks

Categories: Bear Market and Corrections

Why Remembering The Lehman Brothers Collapse Is Important To Stocks

The stock markets in general have had a good recovery from the market crash in 2008 to 2009. As I indicated in many articles over the past four years, it has been an earnings driven recovery. Earnings for most companies fell right off the cliff in 2008 and not a fiscal cliff either. Companies slashed employment, tightened budgets, reined in spending and then the Government stepped in and pumped in hundreds of billions of dollars. With the Federal Reserve now into QE3, market direction is…

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Market Direction – How I Handle A Correction

Categories: Bear Market and Corrections, Profit And Income Strategies, Stock Market Outlook

Market Direction – How I Handle A Correction

About 2 week ago I was writing an article which I called “Market Direction – Should We Be Getting Worried”, which looked at a longer range view of the stock market direction heading into the fall and the Christmas Period. I had wondered what would happen if earnings on big caps stocks started coming in short of expectations. But shortly after starting into the article the market seems to find its footing and head higher, so I put my article on hold thinking that perhaps…

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Market Crash of 1987 – Recalling Black Monday

Categories: Bear Market and Corrections, Editor's Picks, Just My Opinion

Market Crash of 1987 – Recalling Black Monday

25 years ago today stock markets around the world crashed. Investors were shocked and billions of dollars wiped out.The crash actually started in Hong Kong and spread to Europe and then the United States and Canada. The Dow Jones dropped 508 points to 1738.74 losing 22.6%. It was called Black Monday and many investors, analysts and economists feared it was a repeat fo the crash of 1929. Indeed 33 eminent economists from around the world met in Washington DC in December 1987 and they predicted…

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Market Direction Tops And How To Spot The Next Bear Market

Categories: Bear Market and Corrections, Stock Market Outlook

Market Direction Tops And How To Spot The Next Bear Market

Stock market direction since the market made a new 4 year high on September 14 has analysts and investors worried. The high set on September 14 has not been confirmed and the market for the past 10 days remains unable to breach the September 14 high. The longer it takes for the markets to set a new high in market direction, the more the recent high is suspect. As investors we are always worried. Even in March 2009 as the market set new 10 years…

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Market Direction Bet – Lessons Learned From Bear ETFs Losses

Categories: Bear Market and Corrections, Investor Questions, Stock Market Outlook

Market Direction Bet – Lessons Learned From Bear ETFs Losses

I have said many times that Market Direction remains the most important aspect of investing. If you can follow the market direction trend then in most cases you are going to profit or at least not lose capital. But if you want to bet against market direction then I hope you do well. Recently I have received a large number of emails from investors who are losing capital based on their method of market direction investing. It is impossible for me to answer all the…

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Ultra Bear ETFS While Market Direction Remains Caught In Euro Crisis

Categories: Bear Market and Corrections, Stock Market Outlook

Ultra Bear ETFS While Market Direction Remains Caught In Euro Crisis

Market Direction as investors saw yesterday is totally fixated on the Euro Crisis and many investors must be starting to wonder about these Ultra Bear ETFS they hear so much about. With Greece set to vote once again in a June election this basket-case nation has investors concerned worldwide. No matter what the outcome of the June Greek Election the perception of investors is that the Greek crisis will mean an Italian, Spanish, Irish and Portuguese Crisis and therefore a Euro Crisis. What investors fail…

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Collar Option or Married Put Done The Right Way – Collar Strategies Index

Categories: Bear Market and Corrections, Collar Option or Married Put

Collar Option or Married Put Done The Right Way – Collar Strategies Index

Collar Option or Married Put is a great strategy. I get asked all the time when does a collar strategy not work.  It’s the wrong question to ask because a collar option or married put works all the time if your goal is to insure your stock against loss whether you build a long term position or are a short term investor who has a climbing stock and want to protect it against a pull back, which invariably it will have. Therefore a collar option…

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