Update

We have a long 5 week cycle, which allows for lots of things to happen. First, a correction is long overdue, so we have to be on the lookout for one. However, that does not mean we want to leap right into a bear call spread here. First, spreads are likely to be more narrow given the low volatility and relative price movement. Secondly, we are completely unsure of where we are in the bigger picture right now. Technically, the correction could be a doozy and we miss the opportunity this month. It also could take 2 or 3 weeks, only to fuel a major summer rally. Anyone who says they know which scenario will unfold is either a fool or a liar, so be very wary of predictions. In the end, we don’t really care, but we do care about not getting scorched and will try to make the best decision possible this month.