Coach Mark here.

Jesse Livermore is widely regarded as one of the, if not the, greatest trader to ever live. Considered the pioneer of what we regard as day and swing trading, he has passed along a lot of great wisdom to the generations of traders that followed him. On a day like today I have had a quote from his pearls of wisdom dancing through my head. He once said:

“There’s a time to go long, a time to go short and a time to go fishing”. 

Not all trading environments are as easy as others. One might look at market action today and scream “you have to short!” Tech is certainly under pressure as my brother Matt made a great call over the last couple of weeks that he anticipates pre-programmed selling in tech on earnings releases. That has certainly been the case. However, you have 40% of the S&P 500 reporting earnings next week (including four of the seven generals) and a Fed meeting. That is a lot of catalysts to go aggressively short into. Defensive posturing? Of course. One must respect the volatility in tech and we have not seen any signs of bottoming patterns. Feels like a time to go fishing environment in tech.

What about other areas? You are seeing relative strength in small-caps, biotech, defensive sectors. You are also seeing gold, Bitcoin, and Treasuries hold up today. Not exactly the sell everything environment we saw for a couple of days last week.

I do not think it is quite the “time to go fishing” environment everywhere as good short setups can occur and long directional and cash flow plays as well. It is more of a “select your fishing hole carefully” environment for me as markets work through this batch of volatility.

Have a wonderful Wednesday!

Nasdaq 100 (QQQ)

The volatility in tech absolutely should be respected. There are areas where support can form but until we see bottoming patterns it is a tough place to want to go fishing in.

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