The market wasn’t kind to many in 2015, but we could see some big changes next year. Keep these names on your Q1 2016 trading radar…
I hate making market forecasts, but when you do what I do for a living, it’s the equivalent of a football player getting hit in practice: It’s gonna happen and it’s gotta happen.
Before I do any prognostication, let me state my approach:
I am an agnostic. My concern, every day, is whether the market is tradable, i.e. whether we can sell options for large profits. My service has done so for almost five years, and next year may very well be our best year yet.
Why? After the Fed rate increase removes an enormous amount of overhang and uncertainty in the market, we can trade more and roll fewer positions.
We rolled this year about as much as we did last year, despite the savage drop in the price of oil, the Chinese yuan devaluation that led to a 12% market selloff, and a coupe of other technical bounces down.
I expect the market to be a bit smoother next year (especially the first half of the year), which makes it easier for us to trade.
What should we look for in Q1? Here are 26 names…