Tackle Today: Is a Recession Priced-in?
June 15, 2022
«It certainly feels like it.»
Traders,
The stock market is one of the best economic indicators on the planet. Unlike most metrics that offer backward-looking, stale data, the legions of intelligent investors on the Street look far into the future and price in what they see six to nine months from now.
They’re like bloodhounds with finely-tuned noses sniffing out a recession in advance. And based on the evidence, equities are saying something wicked this way comes. Per the chart of the day below, the average stock in the S&P 500 is already down 30%. Worse yet, the average company in the Nasdaq and Russell 2000 is already down 51% and 50%, respectively.
And that presents a silver lining. There comes the point at which quick-footed traders have priced in the worst. Once that happens. We start the inexorable trek higher – even if economic data continues to deteriorate, even if the unemployment rate climbs and Main Street suffers. It’s not that stocks don’t care. It’s that they already baked the lower profits into the cake.
We can plumb lower before going higher, but remember that we come ever closer to the ultimate bottom with each additional percentage lopped off the indexes.
Video of the Day: How to use Options to unleash the Power of Cost Basis Reduction
In this video, you are going to learn how using options can increase your probability of profit and reduce your cost basis. Attend this free webinar to learn more 👉 https://bit.ly/options-live.
Chart of the Day: Market-wide Drawdown Stats
Updated stats on the market drawdown so far.
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.
The Coaches Show Replay
If you missed last night’s episode with Coach Tyler Craig where he talked about the S.T.E.P. Swing Trading System or would like to watch it again, check it out here.
Cash Flow Condors MasterMind Group 9:30 PM EST
The Condors for Cash Flow system is a high probability option selling strategy designed to generate passive income over time. Join us tonight to go over next month’s orders.
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.
Trade Masters 7:00 PM EST
Every Wednesday at 7 PM EST join us on the Trade Masters where two Coaches go head-to-head to see who can find the best trading setup.
Trading Justice 480: Moving Averages
In this episode, Matt and Mark discuss the role of indicators in general and specifically the importance of moving averages and the role they play in technical analysis.
Financial freedom is a journey
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.
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.
