Tackle Today: One Day Does Not a Trend Make
September 8, 2021
≈Don’t sweat the small stuff≈
Traders,
Sometimes down days shake your confidence. When stocks have been in an uptrend and then get dropped kicked on a random day, it leaves you wondering whether it’s the beginning of the end. Fear kicks in, and you wonder if you should bail on your well-placed positions.
Perhaps some of you had these thoughts last night after seeing the S&P 500 down 0.4%. And yes, I realize the ridiculousness of bringing up this point on such a mild losing session.
During times like these, it’s helpful to remind ourselves that one day doesn’t make a trend. Catastrophizing that this is the end is the same as picking tops. It’s unproductive. There’s a reason why we preach the power of trends and the wisdom in assuming they stay in motion. It doesn’t work every time, but know this: it works way more often than going bearish or blowing out of your bullish trades every time a red day arrives.
#TeamTackle
Industrial Sector (XLI)
The industrials sector led stocks lower on Tuesday, losing 1.73% on the session. Volume swelled as prices cracked the 20-day and 50-day moving averages. If this doesn’t warrant downgrading our outlook on XLI, then I don’t know what does.
Video of the Day
Queen’s Court
In this week’s edition of the Queens Court, the coaches bring separate trading picks for Coach Emily to review including Cinemark, Amazon and Tractor Supply. Will she accept the trade ideas or will she lop off the coaches heads?
Today’s line up
Traders Lounge 11 AM EST
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Halftime Report 12:30 PM EST
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Trade Masters 7 PM EST
Join us every Wednesday at 7 PM EST on YouTube as the Coaches go over trade ideas from the Trade Master’s crew!
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