Coach Mark here.

A touch of volatility to start the year…especially in growth stocks. Well not real volatility but compared to the last two months it can certainly feel like it right? Whenever you get, heaven forbid, two days of downward pressure it can make a trader wonder if it is the start of something more. Especially if one is heavily positioned in the area of the market getting sold off.

Is this the start of something more? Unlikely in the short-term in my opinion. Does the market desperately need a pullback or period of consolidation to work out overbought conditions. Absolutely. Are there reasons to be concerned of something deeper down the road. I would argue one should always keep your eye on that…especially if yields start to rise again. However, the first two days of the year does not feel like the start of the next great bear trend.

There is no panic in the market. You do not see broad selling across the spectrum. You see order in many areas of the markets. You saw defensives hold up yesterday well. You see many quality tech names today (GOOGL, AMZN) holding their own. Many cyclical commodities are doing just fine to start the year. In the trader’s lounge this morning I saw more charts that looked controlled than not. It feels to me like an undoing of much of the froth in the areas of the market than enjoyed huge percentage gains over the last couple months more than anything else.

 Things change, economic data over the next week could paint a different picture, but that is my two cents on this pleasant Wednesday.

Dollar

Nice bounce off of the rising 20 daily moving average which is a key trend indicator used by many traders

Traders Lounge 11 AM EST

Join the coaches in this live lounge, ask questions, discuss ideas or just sit back and listen to veteran traders discuss market conditions.

The Coaches Show Replay

If you missed last night’s episode or would like to watch it again, check it out here.

Halftime Report 12:30 PM EST

The Halftime Report starts at 12:30 EST and covers what news is driving the market, chart analysis from the movers and shakers of the day, and fun in a way that the coaches at Tackle Trading can deliver.

T

Financial freedom is a journey

Sign up now and gain unfettered access to all of the quality content and powerful Scouting Reports that our Pro Members enjoy for 15-days absolutely free with no strings attached and let us show you what your trading has been missing.

Legal Disclaimer

Tackle Trading LLC (“Tackle Trading”) is providing this website and any related materials, including newsletters, blog posts, videos, social media postings and any other communications (collectively, the “Materials”) on an “as-is” basis. This means that although Tackle Trading strives to make the information accurate, thorough and current, neither Tackle Trading nor the author(s) of the Materials or the moderators guarantee or warrant the Materials or accept liability for any damage, loss or expense arising from the use of the Materials, whether based in tort, contract, or otherwise. Tackle Trading is providing the Materials for educational purposes only. We are not providing legal, accounting, or financial advisory services, and this is not a solicitation or recommendation to buy or sell any stocks, options, or other financial instruments or investments. Examples that address specific assets, stocks, options or other financial instrument transactions are for illustrative purposes only and are not intended to represent specific trades or transactions that we have conducted. In fact, for the purpose of illustration, we may use examples that are different from or contrary to transactions we have conducted or positions we hold. Furthermore, this website and any information or training herein are not intended as a solicitation for any future relationship, business or otherwise, between the users and the moderators. No express or implied warranties are being made with respect to these services and products. By using the Materials, each user agrees to indemnify and hold Tackle Trading harmless from all losses, expenses and costs, including reasonable attorneys’ fees, arising out of or resulting from user’s use of the Materials. In no event shall Tackle Trading or the author(s) or moderators be liable for any direct, special, consequential or incidental damages arising out of or related to the Materials. If this limitation on damages is not enforceable in some states, the total amount of Tackle Trading’s liability to the user or others shall not exceed the amount paid by the user for such Materials.

All investing and trading in the securities market involves a high degree of risk. Any decisions to place trades in the financial markets, including trading in stocks, options or other financial instruments, is a personal decision that should only be made after conducting thorough independent research, including a personal risk and financial assessment, and prior consultation with the user’s investment, legal, tax and accounting advisers, to determine whether such trading or investment is appropriate for that user.