Opinions
David Burrows
S&P 500 Index
SPX-I
COMMENT
Jun 11, 2025
N/A
Stock price when the opinion was issued
indexes
It's the ideal tool to help you make quicker, more informed decisions for
managing and tracking your investments.
You might be interested:
COMMENT
He bought an option on the S&P at 3,275 to March 2020 at an average cost of $19. Hold till November? He bought an option on the S&P. Interesting--you can exercise them early. 3,275 is an aggressive target to March 2020, but it could happen. Sure, hang onto November. He doesn't expect much time-value erosion till then. Has potential, but you have challenges making that money. He's prefer taking options if he was going long; it's less risky.
indexes
DON'T BUY
technical analysis by Jessica Inskip re: volatility, strong job market and higher inflation
The post-election rally kept the S&P up, and Inskip was hoping it would remain above 5,850, a key level. It closed the week today at 5,827, crossing that support. Next level of support is 5,783. According to the Ichimoku Cloud, the S&P chart has turned negative, bearish. Inskip thinks we could roll back the entire post-election rally, taking us down to 5,783. The S&P broke below the 13-week average.
indexes
When he looks at a universe of stocks like the S&P 500, what he cares about is whether breadth has been improving or deteriorating. No bear market ever happened while breadth was expanding. He also tracks the percentage of stocks above 50-day and 150-day moving averages. Those are all expanding.
Forget what we think about seasonality and weakness in the second two weeks of June. Market's been pretty good since April. Still news risk, and the S&P hasn't been able to make a new high yet. But breadth is still improving. Unless that started to deteriorate, picking a price and hoping you're picking a top is a risky business.
Around the world, more and more markets are performing well. This speaks to $$ flowing into equities as a whole, not just in the US. Stocks are outperforming bonds pretty steadily.
He'd wait to see some technical indication that we're going through a top before embarking on this strategy.