Jeff Kilburg Wants To Sell S&P 500
Speaking on CNBC's Futures Now, Jeff Kilburg said that he would sell the S&P 500 at 1,999. He thinks that the market had a tremendous run in August and it seems that it is a little bit overdone.
Kilburg explained that with a decrease in QE in 2014, companies started to decrease buybacks. In his opinion, that means that managers find current prices a bit expensive.
His target price for this trade is at 1,974 and he placed a stop loss at 2,011. The trade offers a 2-to-1 return. If the market rallies he would lose $600; if it declines he would win $1,250.
Scott Nations thinks that if the S&P 500 declines below the 2,000 level, many traders would find it tempting to sell short. The S&P 500 index closed Tuesday's trading session right at 2,000.
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