Here are 6 things to remember

Traders,

Equities limped into the weekend and based on Sunday night’s movement in the futures market, the weakness will continue into Monday morning. Bearish evidence is beginning to mount. To help keep your wits about you, let’s review a few critical points regarding corrections.

First, the stock market drops 5% from its highs 3x on average per year.

Second, the stock market drops 10% from its highs once per year on average.

Third, no one knows the duration nor magnitude of the current drop. Maybe the worst is behind us; maybe it’s just beginning.

Fourth, this will undoubtedly lead to excellent buying opportunities. Every correction does.

Fifth, protecting your emotional capital during a downturn is imperative. Those who are too shellshocked at the end of this won’t have the intestinal fortitude to buy the bargains.

Sixth, episodes like this are precisely why we preach the importance of having a plan. There’s nothing wrong with seeing your account suffer a drawdown when markets falter. However, there is something wrong with allowing yourself to lose so much that it jeopardizes your ability to participate in the inevitable recovery.

Patience is required here. Don’t force trades.

#TeamTackle

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Chart of the Day

Will the Russell rendezvous with Support?

Small-caps have led the market lower and are quickly approaching the lower-end of their six-month-long trading range. The looming battle at 2100 in RUT will be watched by investors everywhere. Its resolution will signal the direction of the market’s next move. Here’s to hoping bulls put on their big boy pants and bring out the big guns.

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Video of the day

Bear Market Trading Tips

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This week the Bear Market Survival Guide MasterMind Group is being held and Coach Tyler did a wonderful job holding a special webinar on bear market trading tactics a while back that we thought we would share. 

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.

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.

Weekend Reports

Watch the Stock, Options, Commodity and Forex Reports to help you prepare for the week.

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