Traders,

Consider these two facts.

First, we’ve never fought inflation readings as high as those seen this year without pushing the economy into a recession.

Second, the stock market has reclaimed 50% of the bear market losses. Stocks have never moved back to new lows after this happened.

Both facts stand at odds with each other.

The first suggests more economic pain before the war with inflation is won. And that would likely lead to the bear market’s return and a push to new lows for the stock market.

The second suggests the low is in, and we won’t retrace all of the gains regardless of what ill economic winds blow our way. I suppose we could thread the needle by seeing an actual recession arrive without the stock market taking out the June lows.

Time will tell, but I find the battle between both facts utterly fascinating.

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Video Of The Day: How to estimate reward-to-risk ratio on a bearish trade

Learn how to quickly estimate reward-to-risk ratios for your directional #swingtrade. In this video, we will show you how to use a simple and easy-to-use tool that will automatically do the math for you and help you make better trading plans quickly.

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Chart of the Day: Stocks Recover Half the Bear Market Losses

Here are all previous episodes where stocks recovered at least half of bear market losses. All instances saw higher prices one year out. Will the streak continue?

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Options Theory Blog

How I’m Building a Shopping List

Today’s video shows how I’m analyzing the current market pullback and finding the best stocks to buy when the drop is done.

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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 webinar with Coach Greg Holmes where he talked about Poor Boy’s Covered Call 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!

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