≈ Tackle 25 is coming to town. ≈
Great ideas and great Mentors do not equal great systems. You can have the most creative and innovative Concept for a trading system worked together with the best available Mentor, however, if it lacks rules and execution, it will tank.
After choosing the mission of your trading system you must start a reverse engineering process, working backward to the rules that will make the system itself work. This is what the Outline is all about.
The first essential component of a good and reliable outline is “Identifying Candidates”. This is where you’ll be choosing the assets you’re gonna be trading and will also be filtering them against a set of criteria. You are building your portfolio here.
Now you might be thinking: “Geez, what a load of work to be done. What tools shall I use to find the stocks? What about the criteria?”.
Don’t worry. If we are talking about a covered call system, we got your back.
Next week we’ll be releasing the Tackle 25 2019 edition. A list of 25 hand-picked stocks to write some good old covered call against.
Stay tuned. Tackle 25 is coming to town to help you start 2019 with the right foot.
Chart of the Day
Correlation
The heat map above depicts the correlation between the U.S. Dollar, the SPY and the sectors ETFs. The greener, the higher the correlation.
Correlation measures the rate at which two stocks have historically tended to move in relation to their mean. Stocks that move in opposite directions have a negative correlation. Conversely, if they tend to move in the same direction they have a positive correlation. A correlation value of 1 means that Stock A is exactly correlated with Stock B.
When choosing the candidates for your trading system you’ve got to pay a special attention to stock correlation. If a said sector tanks, chances are most of the stocks inside that sector will tank too.
When selecting candidates for the Tackle 25, we take care of this correlation detail for you. Stay tuned.
Video of the Day
What is a Bull Market?
A bull market occurs when a financial instrument has been and expects to continue to appreciate in value over time.
Today’s Lineup
Traders Lounge 11am 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 12:30pm 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.
Market Recap 4:30pm EST
The Market Recap is designed to give you a quick overview of the day that was. While brief, this report is designed to cover all of the major events that drove the markets that day and help you plan for the trading day ahead.
Trading Justice Podcast Episode Episode 301: Merry Christmas Eve with The Plunge Protection Team
Steve Mnuchin did his best impersonation of The Grinch and stole all the hope from bulls this Christmas Eve. On this episode of the Trading Justice podcast we discuss Steve Mnuchin and the Plunge Protection Team and why a man vacationing in Cabo San Lucas could send the markets down hundreds of points on Christmas Eve with the utterance of just a few words.
