10 Minute Read

Tackle Today: All Time Highs = All Time Valuations

February 16, 2021

By | No Comments

Fundamental Disconnect

Traders,

As all the indexes are again reaching new highs we have some division in the markets.  Since all the markets are reaching these new highs together then the division can’t be in the indexes themselves.  The division is actually in the market participants and the philosophy of the traders.  It seems that currently we have a couple of groups in the markets, we have the folks that see the market continually going higher regardless of economic conditions and then we have the folks that still believe valuations matter.  Do you see yourself in one of these two groups?  There are certain things that can move a trader into one of these two groups such as trading experience or perspective.  The reality is that neither group is wrong or right, it is just a question of position.

Some folks might find themselves straddling these two groups and that is ok as well as long as one recognizes that if you are going to be part of the first group, meaning that they expect the market still has plenty of room to run, that you must prepare for the time when the market chooses not to go up anymore.  This means that these traders need to keep a keen eye on the markets for any potential changing of the trend.  For the second group who believes that valuations matter then it is important to have a perspective that takes into account that traditionally speaking valuations are at a higher point right now.  This may mean not taking on further positions at these prices or it may mean having a plan to protect against a pullback in value in the future.

Regardless of where you fall in the above scenario, taking a look at ones positioning and planning for any change is prudent.

#TeamTackle


Chart of the Day

Nasdaq Futures

This chart of the /NQ which shows the index continuing to soar after breaking out of resistance on Friday.  All the indexes are currently showing a very similar pattern.  These all-time high prices are having an effect on the valuations of the companies inside the indexes.


Video of the Day

VIX Indicator


Today’s line up

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 8:30 PM EST

This is our weekly MasterMind group. Join the coaches tonight, 8:30pm EST to discuss the markets and help you prepare for the week.

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 only Matt and Tim can deliver.


Tackle Trading: Financial Freedom is a Journey. Sign up now for a 15-day free trial.

Financial freedom is a journey

The Tackle Today series is brought to you by Tackle Trading.

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.

Sign up now for a 15-DAY FREE TRIAL #


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.

Leave a Reply

Chart Modal

Tackle Trading