Adding Puts on the SPY

One thing the market has shown over the past decade is the pervasiveness of trends, especially higher. That being said, we're seeing a bit of a shift in sentiment here. While I've remained more on the long side in terms of trades, I've already kept position sizes relatively small, tried to take losses when necessary, and maintained high levels of cash.

I'm still looking to maintain balance, so I'm adding puts on the S&P 500 SPDR (SPY) this morning. I think we can drop back into the mid-to-low $230s from this level. We're seeing a breakdown below the 13-week simple moving average (SMA), along with bearish crossovers in momentum and trend indicators across the board....305 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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