≈ So much for a sleepy session. ≈

Traders,

A new mutation of Covid is wreaking havoc on risk assets this morning. Stocks indexes are gapping lower by 1.5% to 3%. Oil is down 6.5%. Bitcoin is off 5.5%. With a holiday-shortened session, it’s going to be interesting to see how things play out. So here are a few tips for handling the drama.

First: It never pays to panic. Don’t give in to the hysteria and fearmongering. Even if this sparks a significant correction, keep your emotions in check.

Second: Follow your plan. You do have one, right? Rules and guidelines should steer your hand on a morning like this, not guts or feelings.

Third: Play the long game. If this gap derails some of your trades and you take unexpected losses in the days to come, remember that you’re in this for the long haul. Randomness reigns in the short run. Over the long-term, your edge and profits rule.  

Keep your wits about you, team!

#TeamTackle

Chart of the Day: Russell 2000 Index Futures

Unsurprisingly, it is the little guys bearing the brunt of the damage. Small-caps comprise the Russell and are the most economically sensitive. They’re down just shy of 3%. Mega cap tech, by comparison, isn’t even down 1% this morning. So says the Nasdaq 100 Index Futures (/NQ).

Video of the day: Jedi Options – Fade The Fear System

In today’s Jedi Options Coach Tyler teaches the Fade the Fear System from the Bear Market Survival Guide System.

Today’s line up

Traders Lounge 11 PM EST

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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.

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