Tackle Today: Twenty-Flight Market
May 15, 2019
≈ All this climbin’ is a-gettin’ me down. ≈
In 1956, a 17-year-old kid composed and released one of the earliest rock’n’roll bedrocks, the major hit “Twenty-Flight Rock”. His name was Eddie Cochran. One year later, that same tune got Paul McCartney into the Quarrymen, which later became The Beatles. Sadly, the young composed passed away in 1960 in a tragic car accident, with only 21 years old.
My soul is old. While trading on a shaken market like this one, the first thing that came into my mind was that song. The kid in the music has a girlfriend who lives on an apartment on the twentieth floor; the building elevator is broken down so he has to climb the stairs to go see her, making him too tired to rock by the time he reaches her place.
Trump’s last tweet broke the elevator.
“So I walked one, two flight, three flight, four…”
You start a position and get stopped out just to see it later going in a profitable way.
“Five, six, seven flight, eight flight more…”
Prices break down support levels which lead you to sell ATM calls to hedge, just to see it breaking out resistance levels completely against your will two days later. Even a piece-of-cake strategy like the covered call becomes hellish to manage.
“Up on the twelfth I’m startin’ to drag…”
Your Condors are facing extinction so you start hedging them, stuffing the brokers’ pockets with commissions just to see your trade finish with a $10 profit.
“Fifteenth floor I’m ready to sag…”
This is the type of market that reminds us of how important it is to have rules and stick to them. You’ve got to have emotional control, patience, and be persistent if you want to date that girl on the twentieth floor.
By the time the closing bell rings, you’re too tired to rock.
“Well, they sent to Chicago for repairs
‘Till it’s a-fixed I’m using the stairs
Hope they hurry up before it’s too late
Want my baby too much to wait
All this climbin’ is gettin’ me down
They’ll find my corpse draped over a rail”
Chart of the Day
I’m too tired to rock
This is a 30-minute chart of X, United States Steel Corporation, one of the ten stocks in the Dirty, Sexy, Money list of the Tackle 25 2019 edition (the name of the list is perfect for the moment). Apparently, it’s not enough to get shaken by a tweet, so we’ve got to have earnings right in the middle of the process. I’m too tired to rock.
Video of the Day
How to place a stop loss on a bull call debit spread
Coach D. shows how to place the entry and exit orders for a bull call debit spread, including a simple stop loss exit order method as well as a contingency stop loss exit order method that can help you better manage your risk.
Today’s line up
Traders Lounge 11PM 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 Replay
If you missed last night’s episode where Coaches Noah Davidson and Greg Holmes talked about the Long Stock strategy from Tackle Trading Playbook or would like to watch it again, check it out here.
Cash Flow Condors MasterMind Group 8:30 PM EST
The Condors for Cash Flow system is a high probability option selling strategy designed to generate passive income over time. Join us tonight to go over next month’s orders.
Halftime Report 12:30PM 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.
Market Recap
The Market Recap is designed to give you a quick overview of the day that was. While brief, this report is designed to cover all of the major events that drove the markets that day and help you plan for the trading day ahead.
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