September 30 Signal

October 1, 2016

Since SPY closed September above its 200 day moving average ( $216.92 vs $206.27 ), SPY continues on its Buy Signal,  up 5.3 % year to date, ( 6.94  % including dividends )

For sure , you know I am convinced the low level of interest rates makes equities ( read USA Stock Market ) the only game in town.

Enter the low energy, orange fluff head,  threatening, at the debate, a  market crash if the FED raises interest rates.

Now, what do you do if you are Janet Yellen, simultaneously being accused of keeping interest rates low to help Hillary Clinton but with insufficient evidence to raise rates…….. The answer……nothing.

In my opinion, this means its safe to invest in the leading stocks of sectors which do their business in dollars with minimal cross currency exposure….if the price comes to you…as it could courtesy of  banking woes and lower oil prices.

I believe in this market,  I am writing puts in companies such as FB and NVDA  instead of blindly purchasing the stock at today’s price. I’d rather take delivery at a discount off today’s price plus pocket a premium for having had the courage to have written a Put that gives me some price cushion without altogether excluding risk.

Richard Maurice Gore

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