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Our indicators are giving bullish readings for the fourth week in a row, and I am still in the bullish camp. However, those same indicators are also showing a concerning level of complacency. The market has been setting new all-time highs on relatively low volume, and this usually indicates at least a temporary top for a market move like the 30-point rise we saw in the S&P 500 last month.

The major indices have been stair-stepping their way higher for the last several months, but the pullbacks have been very shallow. In fact, I haven’t seen this type of market action ever before. This is the second-longest bull market on record, and it’s been a very long time since we’ve seen any kind of real correction in stocks, which I believe is a problem.

Furthermore, we are now entering October, which has historically been the most dangerous month of the year for the bulls. We’ve experienced several crashes during this period of time in the past, so I recommend being more cautious at this point.

For that reason, today I’m recommending a bearish trade on a consumer-goods stock that’s been showing weakness lately: Coca-Cola (NYSE:KO) 

Buy to open the Coca-Cola (KO) Nov 45 Puts (KO171117P00045000) at $0.80 or lower. 

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