≈ Cycle and Class. ≈

Corona Day or Corona Week. Pick one. This is how this moment in time will be remembered in a not so far future. As I continue to stare at the charts in front of me, the more I am convinced that the markets operate on high daily doses of Xanax with coffee.

Today, the devastation continues in the US and abroad. I don’t know if it reminds me more of “Dawn of the Dead” or “Mad Max”. Devastated lands packed with zombies, high IV assets and scavengers waiting in the shadows to buy some assets’ carcasses and leftovers.

I’ve also read some institutional investors are dumping assets like crazy. Yes, they follow Warren Buffett’s Value Investing Manual only until page #2. At the first sign of a problem, they discard everything. No quarantine needed.

We all know that a massive coronavirus outbreak will impact economies all around the world but is this a permanent or a transitory condition? Are we at the brink of a major recession?

Healthcare companies, oil companies, tech companies are all getting crushed. Why? Do you see a future without tech or healthcare companies? Quite the opposite. That is the problem with shortsightedness. Cycles and asset classes are not the same thing.

Sons and daughters of the bull market are weeping like widows now. If you want to invest long-term you are probably reading like crazy to make sure that the fundamentals are intact. Fat tails, unknown risks, black swans: the VIX radar will never show them on your screen.

If the fundamentals are indeed intact, enjoy the cycle and join the scavengers team. Pretty soon, some asset classes can be found at a great discount.

Chart of the Day

Square does not care

While the market is being crushed 4 days in a row already, Square (NYSE: SQ) does not care and is up 6% today, squeezed between the 9 and 20 SMA.

Video of the day

How to Backtest a Poor Boy’s Covered Call

In this video, Coach Tyler Craig explains exactly how to backtest Tackle’s Poor Boy’s Covered Calls in order to learn and better execute the strategy.

Rookie Corner

The Big Slide and The Blind Side

Good Day, All! Or is it? A lot of folks are scrambling right now and probably have a pretty hefty case of the trader’s heartburn. You see as I write this the markets have put in three rather large red candles and some of the big stalwarts in the markets have had a 4% haircut in the last three days. This has a lot of folks on edge and worried about what comes next. We never really know what comes next but we can prepare ourselves for what does happen and that is the focus of this week’s blog. So this week we have five tips for being ready with whatever the market gives us.

Traders Lounge 11 PM 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.

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.