How I Use the SPY to Determine Market Direction for My Trades

Before I place a trade, I always like to know which direction the broader market is moving. That way, I can choose a strategy that has the best chance of success.

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And I have a quick and easy way I determine the direction in the broader market...

First, I pull up the ticker symbol SPY, which is an ETF that tracks the S&P 500. From there, I'll look at a six-month chart, and maybe do a little bit of technical analysis to get a better idea of whether or not we have a clear trend, and what it is.

If the market is bearish, I'll sell stocks short or buy put options. If it's bullish, I'll buy stocks and call options.

But my favorite strategy, which is easy to adapt regardless of the type of market we're in, is collecting premium.

Want to learn how I do it?

Go here to see my "Two-Step Trade" in action.

Trade Well,