9 Minute Read

Tackle Today: Bears Strike

August 19, 2021

By | No Comments

What’s Your Plan?


Coach Tyler here. The stock selloff turned nasty Tuesday afternoon after the Federal Reserve meeting minutes showed members were open to advancing their tapering timeline. The S&P 500 closed down 1.09% and breached the rising 20-day moving average.

For now, the damage has been minimal for large-caps, but smaller, higher beta companies can’t say the same. The Russell 2000 Index is testing its 200-day moving average and the lower end of its trading range as I type.

We can’t stress enough how important it is to have a plan for managing positions before bears arrive to spoil your picnic. Decisions made in the heat of the selloff are rarely good ones. For those of you who are part of our trading lab teams, are you noticing how each coach has already mapped out what they’re going to do if prices fall further?

Maybe you just get stopped out of a position. Maybe you scale-in at better prices. Perhaps your naked puts become long stock and you recoup your losses over time. The exact method matters less than the fact that you have a process.

Managing existing positions is only part of the equation. The other part is how you’re going to take advantage of the downturn. This will create a wonderful buying opportunity at some point. Do you have a plan for taking advantage of it?


Chart of the Day

Russell 2000 Tests 200-Day

The Russell 2000 is continuing its selloff in the wake of the Fed meeting. RUT futures are below the 200-day moving average and testing the lower-end of their seven-month range. If we crack here, watch out below. 

Video of the day

Trade Masters

Join Coach Greg, Emily and Mark for another edition of Trade Masters

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.

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.

Cash Flow Club 8:30 PM EST

Join Gino Poore as he hosts the weekly Cash Flow Club

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.

Chart Modal

Tackle Trading

Book a FREE Consultation

Sign up for a free consultation to build your Educational Plan.