«The market backdrop matters.»
Traders,
Market indexes influence nearly everything. They are the proverbial elephant in the room. Ignore them at your peril. Trying to profit by shorting stocks while the S&P 500 is melting higher is just as difficult as buying stocks while the index is locked in a bear market. You’re fighting against the tide.
Traders find themselves with a particularly tricky backdrop right now. The major indexes are all in downtrends. Falling moving averages and overhead supply are conspiring against rallies. The absence of upside follow-through makes it challenging to make any headway with bullish positions.
Of course, there are a few exceptions (oil, gold, commodity-based equities). But they are few and far between. Sometimes the best trades are those you don’t take. This is one of those times.
Video of the Day: Fundamental Focus: What are Growth Rates?
Coach Greg explains what Growth Rates are and how traders and investors can use this important fundamental concept to create an edge in the stock market.
Chart of the Day: Nasdaq Lower Highs
Want an indication that the backdrop for bulls is improving? Get the QQQ to stop its trend of lower highs. It’s not a good look and speaks to bears’ dominance.
Today’s Blogs
Options Theory: Understanding Market Cycles
Today’s blog features a video teaching about the business cycle and the stock market cycle.
Women in Trading: Temperature check on your emotions
Let’s face it! 2022 is off to a bumpy start and we might have to keep the seat belt on a little longer. When the market is volatile, our emotions are high.
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.
Cash Flow Club Replay
If you missed last night’s episode when Coach Greg Holmes talked about Strategies for a volatile market 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.
Women in Trading MasterMind Group 8:30 PM EST
Once a month we’ll be hosting a live webinar featuring Women In Trading with Coach Emily. Get in the game!
Financial freedom is a journey
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