Trade of the Day: Kroger Co (NYSE:KR)

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The market hates uncertainty, so as long as Hillary Clinton is leading in the U.S. presidential polls, the markets will likely continue to show strength.

That being said, my overall outlook is bearish. You would have to say that we’re not in a recession based on the official numbers, but, as far as actual economic conditions go, I would say we are. However, I still think that the Fed should have increased rates in September because they’ve been down at this low level for so long — and, of course, all that has done is create a big asset bubble. I believe the S&P 500 has a real price-to-earnings ratio of 25, which is very excessive and shows that the market is really being pumped up by Fed policy.

I’d expect to see some kind of a correction in stocks after the election, regardless of who wins, and it could be pretty severe. Today I am recommending Kroger Co (NYSE:KR) for a bearish play.

Buy to open the KR Nov 27.50 Puts (KR161118P00027500) at $0.40 or lower.

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Article printed from InvestorPlace Media, https://investorplace.com/2016/10/trade-day-kroger-co-nyse-kr/.

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