Tackle Today: The Oversold Bounce is Here
March 14, 2023
Here’s how to play it.
Traders,
The rubber band effect is in play this morning, with oversold equities snapping back. As expected, the most extended tickers are seeing the largest rebound. Some tortured banks are leaping 50%. Meanwhile, the Russell 2000 is up 3%, and the S&P 500 is up *only* 2%. Here are a few ideas as you think about navigating the rally.
-Since the daily trend of the major indices is down, this rally is suspect. While it may turn into a V-shaped rise that carries us into an uptrend, the higher likelihood is that the strength wanes, and we form a lower pivot high.
-You should be using this jump to your advantage. If you felt overexposed at the lows yesterday, here’s your chance to lighten up by exiting bullish positions you no longer like and/or entering some bears if the bounce fizzles and we roll over.
-If you were brave enough to deploy short-term bullish trades during Monday’s decline, lock in some gains by moving up stops or taking partial profits into strength.
-Above all, resist the urge to chase new longs. The S&P 500 is running headlong into a heap of overhead resistance levels.
Frank’s Charts
Chart of the Day: S&P 500 (SPY)
The rally is robust, but overhead resistance looms threateningly above.
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.
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 the coaches at Tackle Trading can deliver.
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.
Legal Disclaimer
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.
