Coach Mark here. We have a lot of headlines floating around the market right now. Headlines out of the Middle East, geopolitical headlines concerning China, inflation, earnings, Fed speak….no shortage of headlines fighting each other for attention. A market that was seemingly worried about nothing a few weeks ago is suddenly debating and worrying about a whole lot!

Out of all the stories for me right now, the main story is a technical one. I tend to worry more about the macro picture on extremes. Does the macro picture warrant full positioning during a strong uptrend or has momentum just carried it to this point? If I do not believe it does then I scale back. Does the macro picture warrant panic at a prolonged and deep selloff? If not then I start adding. Macro analysis at these points become my primary tool.

At points where you are now (where the trend has been broken but the selloff has not been extreme) I pay attention to the macro but my decision-making is heavily influenced by technical analysis. I am looking for signs that the selling is done. I am looking for bottoming patterns that can lead to reversal analysis. I am looking for tactical opportunities to take profit on bearish hedges and add to bullish positions at these reversal points.

The nice thing is that I do not have to do this alone! I am surrounded at Tackle Trading by world-class technicians including my brother Matt who openly share their insights with all of us. It is amazing being a small part of this team.

In the coming days be sure to check out the Halftime Report, read the in-depth Tackle Trading Newsletter released on Saturday, and attend the pro content. Times like these are much easier when you are part of a team.

Have a fantastic Thursday!

Chart of the Day: S&P 500 (/ES)

Expect the chart of the day to be the S&P 500 more times than not in the coming week as the biggest index in the world is likely to let us know when the selling is over from a broad perspective. Bottoming patterns here are going to be key.

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.

Cashflow Club 8:30 PM EST

Held every Thursday before Friday’s option contract expirations, this show helps you perfect your favorite cashflow strategies.

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 the coaches at Tackle Trading can deliver.

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