≈ 3 days down for stocks ≈
Market’s are down in early trading on Tuesday setting up for the first 3 day sell-off in several months for most of the indices. The Nasdaq has sold the most during this stretch now down over 8% in total as momentum names that were top performers during the bullish run are seeing some profit taking.
The question trader’s keep asking is will this spin into something more than a pullback? It’s too early to tell. There are many storylines that continue to play out including tensions between the US and China, questions about further stimulus from Congress, the lack of fundamental conviction in the rally and seasonal risk factors.
How are you trading this market? It is important to have a game plan, and a market posture in place. It can be easy to get swept up in the daily emotions of the back and forth in prices, especially if you get caught on the wrong side of price action. But the most important thing any trader can do is execute their trading plan daily trying to capitalize on opportunities and minimize risk.
For veterans, I am sure it’s nice to see some actual price action come back into the market. For beginners, or bulls who were over-leveraged, even 3 days like this can be difficult to navigate. We’ll be there to analyze all of it with you as the market moves through the week.
Chart of the Day
MGM OCT 24/28 Bull Call Spread Risk Graph
Coach Tyler did a nice write-up in this week’s options report on how to take a Long Call and convert it into a Bull Call Spread to reduce risk. Review the report here: https://tackletrading.com/options-report-sep-5th-2020/
Video of the Day
What is a Bull Call Spread
Coach Tim teaches the basics of the Bull Call Spread strategy in this tutorial.
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 8:30 PM EST
This is our weekly MasterMind group. Join the coaches tonight, 8:30pm EST to discuss the markets and help you prepare for the week.
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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