Greetings Friend:
Happy Sunday afternoon. At this weekend's trading class [and beyond for that matter] I was inundated with a certain class of questions.
- When should I sell?
- Can the market go higher?
- How do you tell when the market is ready to reverse?
- Should I get short?
- Should I buy crash puts?
All of these are versions of the same question..."Where's the top?"
If you've listened to me at all, you know I'm not a fan of prediction. Mostly because I'm incapable of doing it consistently... but also because I've yet to meet anyone else who can do it consistently.
There have been multiple times over the last few years when it looked like the market was stretched and topping out... only to have stocks gather themselves and march higher still.
However...
If you're willing to risk it, there are ways to get positioned for a potential drop... and there's no need for prediction. That's what this post is about.
I also managed to post a fresh trade idea. You can find that here.
