Here is what I do before each trading day:
1. Identify areas of support and resistance – This helps you know where the market will consolidate or potentially break out or break down.
2. Review the US dollar pricing since over 50% of S&P 500 firms drive their earnings from overseas. The higher the dollar, the less attractive US firms are global.
3. Review 10-year treasury rates – Interest rates compete for investment dollars. When rates are higher, the probability is that more dollars will leave equity markets and move to bonds.
4. Review S&P 500 futures to understand how the market is trending.
5. Review S&P 500 volatility as measured by the VIX to understand when to sell options or when to buy them.
📲 Interested to learn more about how I trade? Stay tuned for regular updates and information on how you can become a successful trader, click here: https://www.youtube.com/c/SimpleOptionStrategies?sub_confirmation=1
Talk soon,
Al Losada
Founder | SimpleOptionStrategies.com
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You can also check out my YouTube Channel at SOS YouTube.
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