5 Minute Read

Tackle Today: Sherlock Holmes

August 16, 2018

By | 1 Comment

≈ My mind rebels at stagnation. Give me problems. ≈

— You know, Holmes, I’ve seen things in war I don’t understand. In India, I once met a man who predicted his own death right down to the number and the placement of the bullets that killed him. You have to admit, Holmes, that a supernatural explanation for this case is theoretically possible.

– Well, agreed, but it’s a huge mistake to theorize before one has data. Inevitably one begins to twist facts to suit theories instead of theories to suit facts.

Sherlock Holmes, 2009.

– US economy numbers are strong. How about the inflation?

– The trade war has already begun. How about the market crash?

– EU interest rates are still at the zero level with a poor economic growth. Why?

– Trump’s Fifty Shades of Twitter is still a top box office movie. Where’s the VIX spike?

– Gold is a safe haven. Is it? Why is it being dumped?

The supernatural is all around us all the time and we want to play Mr. Holmes. We need to understand what’s going on so we can feel a little bit more comfortable; dig deep into the whys, hows, and intricacies. Our minds rebel at stagnation. We want problems.

Or not. We can just trade the trend or go long the fundamentals until they change.

Chart of the Day

Trade War

US have FANG (Facebook, Amazon, Netflix and Google: 26.98% of QQQ total holdings). China has BAT (Baidu, Alibaba, and Tencent: 27.74% of CQQQ total holdings). Trade War is causing friction but it seems that the Qs couldn’t care less. Crazy train. However, the Chinese Tech ETF as well as the Shanghai Stock Exchange Composite are suffering. What’s the reason behind it all? Why is it happening? Does it have anything to do with tariffs?

Your mind is rebelling at stagnation and you want problems. Or not.

Video of the day

What is a Bear Put Spread

A Bear Put Spread is an options strategy that involves 2 transactions. A trader initiates a Bear Put Spread by Buying a Put Option, and conversely Selling a Put option in the same expiration month. The sold put option, also referred to as the short put, must be at a lower priced strike price than the bought put option, also known as the long put. By selling -1 put, and buying +1 put at a higher strike price the trader initiates a Debit Spread.

Today’s Lineup

Coaches Lounge – 11:00am 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 – 12:30pm 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.


Cash Flow Club – 8:30pm EST

Held every Thursday, this show helps you perfect your favorite cashflow strategies.


One Reply to “Tackle Today: Sherlock Holmes”

  1. JustinDriskell says:

    The logical answer to the Sherlock Holmes mystery is that the man took his own life with a single self inflicted gunshot wound. He can easily predict what and when he’ll do to himself. Just a thought. 🙂

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