Whoops!  Banana peel.  All major US markets slipped and fell in the midst of political, geo-political, terrible retail earnings, and cyber attack drama.  Or maybe it was just time for a pullback, albeit the worst one in 8 months.  The Nasdaq slipped the most after breaking out to new highs just last week.  S&P 500 slipped back into the middle of a range, and just below the 50-day moving average.  All sectors remain flat except for tech for now, and overall market sentiment has slipped from bullish to slightly bearish in a single day.



Volatility shot up from exceptionally low levels (VIX near 10) to above 15…the highest level in about a month.  Is this a good time to head for the hills or pick up some bargains?  Good options traders can make money in any market, and some even retire rich.  To learn more:  bitly.com/bachelorsOU


OPTIONS INSIGHTS:  Though we have already mentioned the need to put on more bearish trades, especially outside of technology, the main change is that sentiment has become both more bearish and more volatile.  This suggests that shorter term vertical spreads could be effective in this environment, especially as our overall market outlook becomes less certain.  There is always a way to win in the markets. To see our amazing TOTALLY FREE webinar on trading success principles, register here:  https://attendee.gotowebinar.com/register/8140710807128688641

 OVERSEAS:  European and Asian markets were broadly down in overnight action, with many key markets down over 1%.  Though still down, Chinese markets were only fractionally.

OIL:  Oil and gas inventories fell again last week, allowing crude prices to rise up near $50 per barrel before backing off about 1% today.  Summer driving season is drawing near, but inventories still remain large, and production in the U.S. is stronger than usual.  Courtney Smith is a commodities expert.  To hear what he has to say about oil and other opportunities, get a special offer on membership here:  bit.ly/bachelorsOU

JOBS:  Jobless claims looked very good this week.  Down 4K from the prior week, and 8K better than expectations (232K vs 240K expected).  Continuing claims area now at a 28 year low as the demand for labor improves.

BIOTECH INSIDER: We often talk about how to make money in the markets.  However, we’ve also been sure to talk about how to protect that money.  Depending on to whom you speak, experts say to risk 1% to 3% of working capital on any one trade.  To prepare for another pullback, you need to think about exposing yourself to less risk if the volatility in the market is too high.  This is particularly true in the world of biotech where new information  can change the game fast.  Lower your capital risk and tighten your stops if need be.  As an investor, you should be familiar with a stop-loss, or the order given to a brokerage to sell a position once it drops by a certain amount or hits a certain level.  The most important lesson to learn is this — a trader with no plan is tempting fate.  Do you know when to exit on an up or down move?  What stop losses or trailing stop losses do you have in place?  Know these things, and set a plan so you won’t run into “crash and burn” scenarios as often as those with no plan.  Brought to you by Biotech Options.  For more information on the team’s methodologies, click here now: http://optionswealthinsiders.com/biotechv2/

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