Is a Pullback Coming?

Wade Hansen looks at whether it might be time to load up on short-side plays and put options

   

Video Transcript

On the chart, you can see that we’ve had a tremendous run on the S&P 500. At the end of the year, we got a huge jump higher but since that time, we’ve been drifting higher, higher and higher, coming up on 1,500 without really much of a pullback.

When we zoom in on the chart of the S&P 500, we can see we had one major pullback about halfway up. Since then, we’ve rocketed back up higher. We may be due for another bit of a pullback. Now, it could be a minor pullback like we saw in early January or it could be a much larger pullback like we saw in the latter part of December.

We don’t have quite the same pressure on the market as we did in the latter part of December when everybody was wondering what was going to happen with the fiscal cliff that was hanging over all of us toward the end of the year, so we could be really for a bit of a pullback.

Investor Place advisors John Jagerson and S. Wade Hansen are co-founders of LearningMarkets.com, as well as the co-editors of SlingShot Trader, a trading service designed to help you make options profits by trading the news.  Get in on the next trade and get 1 free month today by clicking here.


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