Coach Tyler here. Sometimes we overcomplicate market analysis, making what should be easy a great deal harder. This often occurs when we shift our focus from WHAT is happening to WHY.

The search for WHY can be dangerous for multiple reasons.

First, there isn’t always a catalyst for short-term market movements. Moreover, millions of buyers and sellers have varying reasons/motivations for participating at any given moment. There’s rarely one reason why the stock market rose or fell on any given day.

Second, focusing on why can delude you into believing you can spot “real moves” versus “fake ones.” Presumably, the real ones are more likely to stick, and the fake ones are prone to failure.

I would kindly suggest that you can’t consistently spot the difference between the two, so why bother?

For example, stocks have been rising for nearly two months, with the S&P 500 climbing 17.5% off the lows. If you focused on WHY it happened, you might have gotten lost down a rabbit hole of Fed speak and economic analysis that caused you to doubt the move. You’re making this harder than it needs to be. Trade what you see, not what you think.

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Video Of The Day: Jedi Options – Bear Put Hedge On IWM

In today’s Jedi Options, Coach Tyler explains a Bear Put Hedge on IWM.

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Chart of the Day: S&P 500 ($SPY)

Bulls won the recent tug of war. Yesterday’s epic breakout sealed their victory. The daily uptrend is continuing.

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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.

Cashflow Club 8:30 PM EST

Held every Thursday before Friday’s option contract expirations, this show helps you perfect your favorite cashflow strategies.

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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