If I had an S&P position opened today at the lower edge of the 1175-1225 band, I would think about buying put(s) with 1160-1170 in mind to secure it and define my risk going forward.
This I would do for a new position because I am operating on two scenarios:
1. We have the Intermediate wave 4 in, or will have it in soon, and we will embark on intermediate wave 5, and there is no guarantee that a wave 5 would extend far beyond the last high
2. The bullish count is wrong and we have more decline to come (from here or after a bounce) and the last thing I would want is to be a happy-come-lately chump to be taken to cleaners because I tried to be cute and buy support
For positions from lower levels, I look at 1168-1175 as a good area of support/stop/concern to me.
Have a Nice Day!
S&P 500 – May 15, 2012 - Bottom Line: Long term trend is up. Mid-term trend is down. Short-term trend is down Weekly S&P stage is Late Advance (2-C) Daily S&P stage is Strong Decli...
1 year ago