10 Minute Read

Tackle Today: Build your Watch Lists

May 21, 2020

By | No Comments

Are you prepared for bullish or bearish?

Traders,

The markets have pressed up against resistance this week as traders and investors are trying to get clarity on the depth of the economic damage from the last two months while also considering the expansive economic stimulus programs from the Federal Reserve and Federal Government and it’s ability to help the economy recover.

Jobless claims came in this morning at 2.43 Million new applications for Unemployment were filed in the last week.  That is down from 2.68 Million last week and has dropped each week over the last 7.  The trend for fewer claims is great, but still overly concerning that over 30 million Americans have filed for unemployment in the last 2 months alone.

We have seen anecdotal evidence in mortgage applications and improving manufacturing data that the economy is coming off the depths it hit a few months ago, but none of the reports point to bullish economic activity.

So, what is a trader to do?  Well, trade.  In a market where fundamentals are being disregarded, monetary policy is ever expanding and even according to the FOMC minutes yesterday will be ready to ‘use all tools’ available.  All a trader can do in the short term is trade the opportunities that come up in front of them.

Investors are waiting for clarity, and there might be some opportunities to consider hedging a portfolio if you want to reduce your delta exposure.  The VIX is now lower than it has been in months, and protective puts are an extremely popular tactic to use in the face of uncertainty.

When traders get together to talk these days, there’s little clarity on the long term outlook, but there’s lots of energy around short term opportunities.  Every trader should have a watch list, and probably multiple watch lists, that can be used to trade the opportunities as they come up in front of you.

In every market, there are winners and losers, find the best candidates for bullish opportunities and bearish opportunities and start preparing your approach.  Because, whatever happens with price i.e. up, down or sideways, you need to be ready with action on your part.


Chart of the Day

HD

Both Home Depot and Lowes reported earnings this past week.  With people staying home more, those home projects seem to be keeping them busy.  Have you started a DiY project recently? 


Video of the day

Money Management With Coach Holmes

If you missed last night’s webinar with Coach Greg Holmes, where he taught Money Management principles, you can catch the replay here.


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.

Cashflow Club 8:30 PM EST

Held every Thursday before Friday’s option contract expirations, this show helps you perfect your favorite cashflow strategies.

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