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The market is still on a sugar high, as evidenced by the Dow’s surge above the 21,000 level this week following President Donald Trump’s promises to increase jobs in the United States and boost GDP to 3%-4%. The problem is that this will eventually subside when market participants realize that it is unlikely these promises will be kept.
But when the market is on a sugar high like this, it could just keep moving up, so we don’t want to buck the tape for now. Eventually, I think we’ll see a correction when investors realize that Trump’s spending bill is unlikely to be passed. Even if it is, I don’t think it will help much.
However, we’ll still be riding the market’s sugar high with a bullish position today:
Buy to open the Cooper Tire & Rubber Co (NYSE:CTB) Apr 42 Calls (CTB170421C00042000) at $1.20 or lower.
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