«Yeah, Baby!»

Traders,

Even by bear market standards, the past two days have seen an epic snapback in equity prices. My watchlist was littered with dozens of stocks ripping over 10% Wednesday. I’ve never seen FXI rise 24% in a single day, nor EEM jump 8%. Impressive, most impressive.

So, was that a bottom?

Undoubtedly. We formed a pivot low and are in an upswing.

But was it “THE” bottom?

Too soon to tell. You never know at the moment. We need to break resistance and build on this foundation in the days to come. We need to break above descending trendlines and 50-day moving averages. We need higher pivot lows to form. In short, we need more evidence of a trend change.

One bounce does not a trend make.

But celebrate it while it’s here. Use it to your advantage by peeling off wounded bull positions at smaller losses if you need to get smaller. Use it to deploy new bear trades (if that’s your game) if prices rollover again. Use it to sell calls against stock positions. You can now get more premium than was available just yesterday. Do what all successful traders do after a significant rally – improve your positioning.

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Video of the Day: Jedi Options – Why Coach Tyler Loves Iron Condors

In today’s Jedi Options, Coach Tyler answers the question as to why he loves Iron Condors.

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Chart of the Day: What a Squeeze! ($FXI)

Chinese stocks surged over 24% higher yesterday amid meteoric volume. And yet, FXI is still below the 20-day moving average, lol.

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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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Financial freedom is a journey

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