Tackle Today: Stocks Slip
July 9, 2021
≈ It’s what happens when Indexes become extended≈
Traders,
Pullbacks are inevitable – especially when prices have risen too far too fast (I’m looking at you, QQQ). If we don’t retreat and prices get even more overbought, it simply means we’ll have a worse (read: steeper, quicker) selloff down the road.
That said, I’ll be the first to admit that when retracements start with a down gap like yesterday, it’s tough. Some stocks may have jumped past your stops resulting in more significant losses than expected. Shake it off. It’s part of the game and occasionally happens.
In my experience, the worst thing you can do during a day like Thursday is panic and make decisions on the fly. When emotions run hot, you’re more likely to make bigger mistakes. This is why we map out our trades ahead of time. If you didn’t plan how you would react in a situation like this, that’s okay. Just don’t do it again!
Cash flow traders relish rug-pulls. They create compelling entry points for strategies like naked puts and bull puts. Higher implied volatility is just what the doctor ordered for premium sellers. Though the VIX faded by day’s end, its intraday high of 21.29 neared a six-week high.
No one knows how deep the retracement will run. But there’s no denying selling premium just got a lot more attractive.
#TeamTackle
Chart of the Day
Ark Innovation ETF (ARKK)
Coach Tyler highlighted ARKK as a bull retracement opportunity during Wednesday’s Trade Masters. Thursday’s down open had the fund nestled close to potential support at the rising 200-day moving average. Buyers gobbled up the weakness. Let’s see if they create a follow through session today.
Video of the day
Trading Pattern Recognition with Matt Justice
In this #tradingforbeginners video, Coach Matt Justice from Tackle Trading talks about the importance of #patterns in #trading.
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