≈ Prepare your trades. ≈
The metals market, specifically Gold and Silver, have been safe-haven investments for a long time. Even though we live in a modern world, this fact hasn’t changed. The market volatility and bearish sentiment in stocks was sky high during most of December. While stock prices were falling, metals prices were rising.
This week, Silver broke resistance. Gold broke out weeks ago, but Silver was lagging. Were you ready? Did you pull the trigger?
Veteran traders work from a watch list of major stocks, ETFs and other tradable instruments. SLV is an Exchange Traded Fund that is a very popular vehicle used by traders to trade the Silver market. This Wednesday, it broke a multi-month resistance zone.
Whether you caught the breakout or not, the key learning takeaway here is simple: prepare your entries and exits in a trading plan. As traders, we don’t know when something will trigger. We can only prepare and act, or react, to the action in front of us. The breakout of SLV is a great example. This is a key zone that traders have been watching for Months.
When you build a list of companies with key support, resistance and trend levels identified in advance, you have an opportunity to trade with more confidence when those entry triggers confirm.
Plan your trades, trade your plan.
Chart of the Day
SILVER BREAKS OUT
Video of the Day
Using The RSI Indicator to Determine Breakouts
On the Coache Show, Matt Justice and Gino Poore talk about breakouts. They use an RSI indicator to help figure out if a stock is on a breakout or fakeout.
Today’s Lineup
OPTIONS THEORY
How to Be Wrong and Still Make Money – TLT Edition
Let’s take a look at a recent bond trade to discover how I adjusted a put fly gone awry. Throughout the winter wilting in equities, bond prices were booming amid a classic flight to safety trade. As is often the case when fear seizes the Street, stocks become oversold and bonds overbought.
Traders Lounge 11am EST
Join the coaches in this live lounge, ask questions, discuss ideas or just sit back and listen to veteran traders discuss market conditions.
Cashflow Club Replay
If you missed last night’s episode where Coach Gino talked about rolling options or would like to watch it again, check it out here.
Halftime Report 12:30pm 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 only Matt and Tim can deliver.
Market Recap 4:30pm EST
The Market Recap is designed to give you a quick overview of the day that was. While brief, this report is designed to cover all of the major events that drove the markets that day and help you plan for the trading day ahead.
