Jon Najarian: U.S. Market Dealt a Winning Hand for the Second Half (SPY)
If you’re investing, all you need to concern yourself with is figuring out where the market is heading next. Jon Najarian of OptionMonster.com thinks the answer is higher; but with a catch. As a trader he can’t help but notice the fact that the S&P500 is running headlong into overhead supply. With a trading time horizon, Najarian’s shorter than a decent pop song. He started trimming longs in the mid-1,320s. From the low 1,340s where stocks are now, Najarian is betting the next move is lower.
Bigger picture, he thinks the summer trading range is going to be resolved higher with stocks finding their way back to the mid-1,400s later this year. Najarian says the U.S. has low energy prices, a possible revival in manufacturing, and the simple advantage of not being Europe all working in its favor. “If you can’t win with that hand in America right now you absolutely shouldn’t be in business,” he says.
See the full “Breakout” interview below: