Author of the iconic book "Options as a Strategic Investment," Larry McMillan on a ThinkorSwim chat talks about the 1938 analogy for the current stock market. If the pattern holds, the top is one month to four months out, and that will be followed with a slow moving, grinding slide down back to the March 2009 lows that will take two years or more.
For the readers that never heard of McMillan, that book is often THE book that option traders cut their teeth on.
As for the stock market, I had a strong urge to short SPY during morning weakness. Good thing I didn't follow that impulse, as the market came back with a roaring rally into the close. A blowout upside earnings report from AMZN after the close likely means a higher open. As for potential longs, PNC and FCX looked promising, but I didn't pull the trigger on selling out of the money puts on those.
Long AAPL, GLD (2)
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