Coach Mark here.

We have talked in recent weeks about macro mattering in this environment and the “Big Three” charts (oil, yields, and the dollar) putting potential pressure on the markets. All three are in uptrends. All three have macro ramifications. All three are in the short-term spoiling what has been a decent bullish party in 2023. All three are putting additional pressure on the market today.

The question is what comes next. That is the question we as traders are always focused on. Is this volatility this week just another edition of short-term pressure like we had a few weeks ago or will it lead to something more sinister? Those are questions I worry about tomorrow, next week and the weeks that follow. Topping patterns in any of the Big Three or bottoming patterns emerging in the markets are something I will be watching for and plan on acting upon but that is a conversation for another day.

On days like today I just want to focus on making sure my house is in order. I want to go through that process without panicking, deviating from my longer-term plan and see what I can do to sensibly make sure I have cash flow working on positions that I currently have. Covered calls are amazing tools in times like these.

I will be teaching the Cash Flow club tonight and going over covered calls in volatile environments. It will be a great class with lots of applications in market situations like we find ourselves in. Be sure to attend if you are a pro member!

Chart of the Day: 10 Year Treasury Index (TNX)

The 10-Year Treasury Index is at the highest levels since 2007. A strong breakout from previous resistance levels after the Fed’s Dot Plot showed a “Higher for Longer” mentality is adding to the pressure in various markets as we head towards the end of the week.

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.

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 the coaches at Tackle Trading can deliver.

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