stuck in a trading range?

as mentioned yesterday, given how sharply stocks have risen off the october lows we see it as unlikely that we will revisit those lows again over the next few months….but we do think that sometime around Q1 of next year stocks will break the October lows.

in the meantime however the trading range we currently see into year end is between 1200 and 1300…give or take a few points here and there.

the best way to trade this range will be to buy the bottoms and sell the tops of the ranges, either via stocks directly or via writing (selling) out of the money opttions.

the environment may also start to favor individual stock plays again so that rather than only playing the general market direction we can also take trades again that focus on idiosyncratic risk.  

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