There is a brief window over the next couple of weeks where the market could be vulnerable, before bullish end-of-the-year seasonal patterns come into play. Our short-term market opinion is bearish (page 5), which fits within this scenario.
Meanwhile, the feature article addresses several of the seasonally bullish patterns, the most prominent of which we call the Post-Thanksgiving Seasonal trade. A recommendation is made for that system, on page 3.
Another seasonal recommendation, the Heating Oil - Gasoline spread is recommended on page 7.
Put-call ratio signals are on page 6 in this issue. There are new recommendations in Energy SPDR (XLE) and Microsoft (MSFT).
Volatility skew recommendations include an event-driven straddle buy in Williams-Sonoma (WSM) and an event-driven straddle sale in Foot Locker (FL) – both on page 9. Skew recommendations continue on page 7 with new put ratio spreads in ES futures and SPY.
There is a biotech event-driven straddle buy in Therapeutics MD (TXMD), on page 9.
Finally, a conditional VXX/SPY call hedge is recommended on page 12.■
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