Tackle Today: I Don’t Mean to Be Crude
October 18, 2021
≈ Oil is on Fire ≈
Coach Mark from the Cash Flow Vikings here. Oil has been on fire lately and traders and investors that have been in energy stocks in recent weeks have been rewarded no matter what strategy they have been using. Of course, the question on every trader’s mind is not what has happened but what happens next.
Naturally, I do not have a crystal ball but I do know that strong moves can occur on breakouts of historical levels like oil recently had and as such, I want a piece of the action. Even though I primarily focus on cash flow strategies, I want to maintain some directional exposure to energy stocks at all times as long as oil maintains the breakout pattern in case this is another example of an area of the market having a strong run like so many areas of the market have had over the last 18 months. However, I also know that markets can be fickle and never want my financial future nor my ability to manage my account in the short-term responsibly determined by any single play…that is just insane to me.
For me personally, the balance in this situation is maintaining a level of directional exposure that can produce reasonable returns but have this overall exposure be such that if things were to turn south tomorrow it doesn’t mean anything in the larger picture. It also means having a detailed plan on what signals produce a stop loss or aggressive cash flow defensive management plan.
That is how I am playing the oil run. Not too greedy. Not too fearful.
Chart of the Day
Crude Oil Futures
Crude oil futures are up again heading into the market open and the energy sector is the only sector in the green in the pre-market action. The pattern has been quite impressive.
Video of the day
JEDI Options
Coach Tim teaches the Bear Call Spread options strategy using the Russell 2000 Index $RUT in this Jedi Options educational video.
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.
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.
Weekend Reports
Watch the Stock, Options, Commodity, and Forex Reports to help you prepare for the week.
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.
