«It’s finally here.»

Traders,

Commodity prices went parabolic a week or two ago and are finally returning to Earth. In other words, a dip has arrived. In oil and gold, the steepness of the retracement has matched the trajectory of the last advance. The symmetry is impressive and speaks to just how volatile prices are.

Now for the million-dollar question. Is the dip a buying opportunity or the beginning of the end?

Anything is possible, but here are two principles that might help you find your answer.

First, a trend is more likely to continue than reverse. All else equal, I assume dips in an uptrend get bought.

Second, if we break support and damage the uptrend, we may still bounce, but it could result in a lower pivot high. I find it fascinating that oil and gold are moving in lockstep right now. This is the first potential buying opportunity for both of them since they broke out.

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Video of the Day: Options Trading 101 Webinar Replay – How to Swing Trade Long Calls and Long Puts

This YouTube training is focused on Swing Trading Calls & Puts using the S.T.E.P Swing Trading System. Join us to learn how to enter and manage long call and long put trades.

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Chart of the Day: Gold Returns to $1900

If bulls want to defend the $1900 breakout, now is the time to shine. Watch to see if old resistance becomes new support.

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Today’s line up

Tales of a Technician: Naked Puts – Stay or Go?

Today we address these key questions on naked put management: What if it’s ITM and expiration is nearing? How do I decide whether I roll or allow assignment? What if there’s an earnings announcement looming?

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.

The Coaches Show 8:30 PM EST

This is our weekly MasterMind group. Join the coaches tonight, 8:30 PM EST to discuss the markets and help you prepare for the week.

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.

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