Drifting Northward
11th September 2009
The stock market continues to drift higher reaching a new high for the year this week. We continue to be concerned with the lack of momentum, though we must remind ourselves than markets can remain overbought (or oversold for that matter) for a long time. That being said, investors continue to take advantage of 5% dips in the market to load up on stocks, but each time they do it they show less conviction.
An option trade can be a safer way to tag along with this slow ride upward than an outright purchase. Using an option spread provides you with less risk should the next breather taken by the bulls turn into a full blown correction.
