1/5 Best Idea For The Week Ahead

It’s early in the year and I haven’t really collected much data the last couple weeks so I’m going to try something new here. This weeks best idea has no option flow of note, but, it does have insider buys, it has come down over 50% off highs and I think now is the time to execute a trade on it as the chart is setting up. I myself sold some puts on this one this week, so let’s discuss it after we look at how the week closed up yesterday afternoon.

The SPY closed up right below the 50 day. On one hand you could say a clear double bottom is forming but the repeated lack of buyers willing to push this higher is concerning. You see my book everyday, I’m not terrified of where we are, but I can’t say we’re in a raging bull market either. Honest opinion, this is a ho hum year for equities, we’ve rallied so hard the last 2 years a little sideways consolidation is probably due and you’re going to get a lot of choppiness this year but companies are doing well and I don’t see a reason for a huge move down, but valuations are so stretched I also don’t see a reason for a huge move up.