≈ Yeah, it’s time. ≈
We’ve reached the point in the selloff where bulls better get their act together, or else it’s going to get messy. Yes, I know the S&P 500 is still a pebble toss from record highs, but look beneath the surface, and you’ll see some damage. I like using the Russell 2000 ETF (IWM) and Arkk Innovation ETF (ARKK) as my two poster children for where the weakness really lies.
The former is down 7% from the highs and testing major support at the 50-day moving average. This morning’s response to the down open is giving evidence that the bounce may finally be here. As for ARKK, well, it’s stunk up the joint. But, it’s desperately oversold, and that volume crescendo we saw over the past two sessions reeks of capitulation.
I choose optimism here over pessimism. Besides, it’s tough to find a low-risk entry on bearish trades. So, even if you think some of these downtrends continue (see PYPL, PTON, SQ, TWTR, SPOT, ZM, TDOC, Z), do you really want to deploy a bear trade now?
I didn’t think so.
A bounce will make everyone happy. Make it happen, market gods.
Chart of the Day: Small Caps ($IWM)
Look, it’s now or never, bulls. You’ve allowed IWM to descend as much as possible without destroying the trend, but it’s now crunch time. Either you hold the 50-day and maintain the integrity of the uptrend, or you allow what could have been a glorious breakout and retest turn into an ugly, no-good broken chart.
Video of the day: The Queen’s Court – Managing ROKU
Coach Emily and Coach Matt talk about managing ROKU in today’s Queen’s Court segment.
Today’s line up
Traders Lounge 11 PM 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 Replay
If you missed last night’s episode where Coaches Gino Poore and Tyler Craig talked about Theta Giving or would like to watch it again, check it out here.
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.
Trading Justice Podcast Episode 452: The Art of Swing Trading
In this episode, Coach Matt teaches the Art of Swing Trading with lessons learned from the great trader Jesse Livermore. Matt does a great job breaking down these important technical concepts to help any trader understand them better. Listen in to learn more about swing trading, the 3 pillars to technical analysis, trends, patterns, support and resistance, and more.
Listen to the episode in the player below:
Financial freedom is a journey
Sign up now and gain unfettered access to all of the quality content and powerful Scouting Reports that our Pro Members enjoy for 15-days absolutely free with no strings attached and let us show you what your trading has been missing.
Tackle Trading LLC (“Tackle Trading”) is providing this website and any related materials, including newsletters, blog posts, videos, social media postings and any other communications (collectively, the “Materials”) on an “as-is” basis. This means that although Tackle Trading strives to make the information accurate, thorough and current, neither Tackle Trading nor the author(s) of the Materials or the moderators guarantee or warrant the Materials or accept liability for any damage, loss or expense arising from the use of the Materials, whether based in tort, contract, or otherwise. Tackle Trading is providing the Materials for educational purposes only. We are not providing legal, accounting, or financial advisory services, and this is not a solicitation or recommendation to buy or sell any stocks, options, or other financial instruments or investments. Examples that address specific assets, stocks, options or other financial instrument transactions are for illustrative purposes only and are not intended to represent specific trades or transactions that we have conducted. In fact, for the purpose of illustration, we may use examples that are different from or contrary to transactions we have conducted or positions we hold. Furthermore, this website and any information or training herein are not intended as a solicitation for any future relationship, business or otherwise, between the users and the moderators. No express or implied warranties are being made with respect to these services and products. By using the Materials, each user agrees to indemnify and hold Tackle Trading harmless from all losses, expenses and costs, including reasonable attorneys’ fees, arising out of or resulting from user’s use of the Materials. In no event shall Tackle Trading or the author(s) or moderators be liable for any direct, special, consequential or incidental damages arising out of or related to the Materials. If this limitation on damages is not enforceable in some states, the total amount of Tackle Trading’s liability to the user or others shall not exceed the amount paid by the user for such Materials.
All investing and trading in the securities market involves a high degree of risk. Any decisions to place trades in the financial markets, including trading in stocks, options or other financial instruments, is a personal decision that should only be made after conducting thorough independent research, including a personal risk and financial assessment, and prior consultation with the user’s investment, legal, tax and accounting advisers, to determine whether such trading or investment is appropriate for that user.