Tackle Today: Is The Rut Back? | Tackle Trading: The #1 rated trading education platform

Tackle Today: Is The Rut Back?

Tackle Today Banner

Is the RUT back?

Traders,

If you have been watching the Russell 2000 index for the last couple of months you may have noticed it acting slightly different than it has typically acted in the past.  The RUT was the one index that traders could count on a lot of the time to either move slowly up or down or move more sideways than perhaps the NASDAQ.  For those who have been introduced to the Iron Condor trade typically the RUT was the vehicle of choice for this particular strategy. Of course, the RUT is not the only choice for an Iron Condor trade but its traits usually lent to a certain amount of success.  In the recent past this has not been the case, as a matter of fact it has become increasingly difficult to trade the Iron Condor on the RUT as it has been trending more that consolidating and this makes things tough for the condor traders. 

If we look at the last five trading sessions, we can see that the RUT has been moving almost completely sideways.  Does this mean the RUT is back to normal?  Let’s not be hasty here in making the assumption, if we look at the chart from a couple of weeks ago, we can see that the RUT went sideways for 9 sessions before dropping down to support and then exploding through resistance shortly after that.  So, we don’t really know if things are back to normal or whether this is just a pause before the next breakout?  It is wise to get a bigger data sample before deciding whether a candidate is good for any specific trade type and with the Iron Condor trade, I would want to see the consolidation come back and at least show a couple of retracements from both support and resistance thus creating a true neutral condition before entering a new trade.  

So, whether you are trading a neutral Iron Condor or perhaps an aggressive directional strategy like a Back Ratio spread you need to ensure you have a large enough data sample to establish the right trend and or pattern before entering a trade.  It is always wise to wait for confirmation before entering a new trade.

#TeamTackle


Chart of the Day

/RTY Daily Chart

abc

The RUT index has been trending quite aggressively as of late which is somewhat unusual for this index at least judging by history.  We can see a short-term sideways movement but at this point it is uncertain whether it is ready to break out to the topside or move into a consolidation phase.


Video of the day

Nine Steps New Traders Must Do

Coach Tim Teaches Nine Steps to Trading


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.

Coaches Show Replay

If you missed last night’s episode where Coach Tyler Craig Earnings Season Best Practices or would like to watch it again, check it out here.

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

Join us for a special webinar with the coaches where they’ll analyze some trade setups.

Cash Flow Club 8:30 pm EST

Join the Tackle 25 Mastermind group tonight with Coach Tyler to learn more about Covered Calls and management.


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.

Share this

X
Facebook
LinkedIn
Reddit
Pinterest
Telegram
WhatsApp

More Insights

Join the #1 Rated Trading Education Platform

Learn to generate monthly cash flow from the financial markets and how to grow long-term lasting wealth. Tackle Trading is an amazing online community for active traders that is led by seasoned market professionals. Tap into the power of Tackle Trading’s proven trading system and learn how easy it is to make money with the proper coaching and education.

8,800+

Members

100+

Reviews

Ready to take your trading to the next level?

Get in touch today and receive a FREE complimentary consultation.

Let us help you start trading!

Our Pro Membership gives you the tools to tackle all your trading obstacles.

Register for the Master Trader Live Workshop and get the First 15 Days on Us

Book a FREE Consultation

Sign up for a free consultation to build your Educational Plan.