The Stock Report is a weekly report delivered to PRO members of Tackle Trading. In this report, you’ll receive information, guidance, education, and content that will help you develop as a trader, and learn how to use setups found in the current marketplace to add to a watchlist.

Born to wear Crocs

Like a true nature’s child
We were born, born to be wild
We can climb so high
I never wanna die
Born to wear Crocs

Hey Tackle Traders,

Christian here, riding the lightning for the first time.

It’s impressive how the year of 2018 is completely lost from a broad market perspective. The S&P 500 Index went nowhere. He’s a real nowhere man. If the index was some random dude or a girl, I’d advice:

– Hey, go get some help. Find someone to talk to. You are all over the place, up and down, you haven’t figured out where to go yet. Go find some meaning in your life. You can’t live like this anymore.

Market participants have been anchoring all year long. That’s how price ceilings (like the strongest one we are seeing at ≈ 2,800, tested five times) and floors are made. People anchor their price perspective at a certain level and either sell at that point or buy from there.

That is a serious resistance level, tested five times during this year.

I bet Peter Fonda and Denis Hopper would be jealous of us traders now. We’re racin’ with the wind.

What about the Crocs?

Since last September we’ve been holding a special meeting every Friday after the market close. It’s our Scouting Report meetings. In these meetings we go through every sector, each one of the major currencies and also discuss entry, stop and target for each stock/ETF pick. It’s a tour de force that is worth every minute, especially for someone as green as myself.

We care about the details because that’s where that old man lives in: the devil. We look ahead for earnings, stock splits, dividend payments, and hesitation. Yes, hesitation. When a particular set up causes silence between the coaches, we know that this pick won’t make it in any of the reports. If we can’t see a clear set up that everyone agrees with and that will be easy for our students to spot, out with it. We also look out for discrepancies, like, for example, being bearish on gold and, at the same time, bullish on gold miners. The devil is the devil because he is old in this business.

Obviously, we have our moments. You can’t expect a bunch of guys to hang out on Zoom for three consecutive hours and not have a laugh in there somewhere during the meeting.

Or discuss Crocs.

I’m always learning new stuff from the Coaches. One of the most recent I’ve learned from them is that Crocs indeed had an IPO and they have stocks being traded in the markets (NASDAQ: CROX). I am thrilled. For two consecutive meetings two of them—and I won’t reveal their names because Crocs are embarrassing—tried to make the ticker into the report. I don’t know which one is worse: the clog shoes themselves or the company tagline “Come as you are”. Poor Kurt, may he rest in peace.

The devil used to wear Prada. Now he wears Crocs, it seems.

In this week we didn’t find any difficulties to scan the markets for both bulls and bears, although the S&P 500 index chart looks as ugly as a pair of Crocs. Anchored again at the ≈2,640 support level, below all major moving averages, we are not sure it will stop there. There are lots of overhead resistance to play a major role once it tries to get back to some healthier levels.

The Dollar continues its own Santa Claus Rally but the vedettes this week are the Communications (XLC), Technology (XLK) and Energy (XLE) sectors. The old bearded Santa has abandoned these lands and investors are promoting a serious exodus, with a high selling pressure. ~Santa Claus is(not) coming to town~.

Make sure to go check out this week’s scoreboard and also make sure that you’ve got your finger on the pulse of the market.

Below you will find all of our picks for this week with suggestions for the entry point, stop loss and targets. Be sure to watch Coach Noah Davidson’s video, where he gives a quick run through all the candidates. This report is like a piano duet: four hands on it.

Yes, Crocs is there also, before you ask.

Trading Insights

First, don’t jump right into any trade. Add all candidates to your watchlists and then analyze each one of them. If you like to do a top-down approach, categorize the picks by sector and study them together with this week’s scoreboard. Coach Cody did a great job.

Second, if you are not familiar with triggers to get in and out of a trade—stop losses and profit targets—paper trade first. And even on paper, you don’t have to trade all picks. Grab the ones you feel comfortable in identifying the trend and the setup.

Third, position sizing. You will notice that there are some really inexpensive stocks on the list. First thing a new trader might think: “I’m going to load my truck with these ones.” BOOM, headlong into a wall before they notice.

Fourth, triggers can trigger and fade back right into the stop loss. It’s not because there is a clear entry that the entry point will work. Markets are not rational in any capacity.

Last insight: Take a look at the video below and learn HOW NOT to trade.

How not to trade😂: pic.twitter.com/KWrhwyAzEx

— Steve Burns (@SJosephBurns) November 18, 2018

Have a nice weekend.

Bulls Watchlist

Bears Watchlist

Video

Position sizing template

Position sizing template for stock & option trading. This helps give you an idea of the max size to trade depending on risk tolerance. We usually do less than the calculator equates to factor in commissions, slippage, and time decay for options. Position sizing is the first defense in your trade. You can download this with the link at the bottom of the picture. Just plug in the Risk tolerance level at top, then the rest of the excel fields. There is a tab for both bulls & bears. Hope this tool helps.

[gview file=”https://tackletrading.com/wp-content/uploads/2018/11/NEW-Tackle-Trading-Trade-Journal-2018.xlsx”]

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