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The three major DOW components are DJIA, UTIL, and TRAN. When ALL THREE are above their 39-week simple moving average, the stock major market trend is bullish. Writing covered calls, LEAP call spreads, or buying call index options like DIA and QQQs are profitable. You should use pull-backs to make income and hedge the drops.

When ALL THREE are below their 39-week simple moving average and main below, the major stock market trend is bearish. Shorting stocks or indexes, writing LEAPs put spreads, and buying QQQ or DIA puts are profitable. Remember, all three indexes below must below and remain below their 39-weeks moving average to confirm a major bear market. Watch out! Bear markets are deadly with prices dropping quite fast. That is exactly why they can be VERY profitable in a shorter length of time.