I’ve Had Some Success With This Strategy

We
continue to see distribution out of the market.  Wednesday’s
trading produced further selling as the NASDAQ is showing that the level of
2,100 is no match for rising oil prices.

 

 

A pair of the market’s
leading stocks also fell prey to the downdraft of prices.  Chicago
Mercantile Exchange (CME) and Google (GOOG) gave up early gains for
negative closes.

 

 

Does this mean the market is
going on a huge decline?  Probably not.  We have been stuck in a trading range
for the better part of two years and this is most likely an extension of it. 
In any case, this is not a good place to own stock as lower prices are most
likely coming.

One strategy that I have
found success in has been through the use of options.  If you are looking to
trade the market, I would definitely refer you to writing options against
existing positions; BUT would encourage you to learn more on the subject or
seek the advice of a professional before doing so.*

Patience is the key right
now.  With home prices overpriced in most markets and the stock market facing
higher interest rates and oil prices, there are limited places to put
investment dollars. 

*Editor’s Note: see the

TradingMarkets Professional Options College.