Tackle Today: Wrestling the bear
September 24, 2020
≈ How are you approaching this market? ≈
Traders,
Over time, most traders are bullish more often than not. When market volatility comes knocking, like it has during the month of September, it can be difficult to deal with the selling pressure that comes with it.
Do you have a plan for your trading accounts to be able to adjust and deal with market corrections? Trader’s can adjust, turn bearish, balance their accounts, and play the downside. It is an important skillset to have.
Do you have a plan for your retirement accounts to be able to ride out the storm, hedge your risk and deal with the pressure? Investors can use put options to hedge, other instruments to balance their long-term portfolios (like inverse ETF’s) and adjust their purchasing targets.
But there is also another opportunity that should develop when markets sell. It gives you an opportunity to use the cash on the sidelines, when you get the right price confirmation signals, to enter positions you have been targeting for some time.
Markets have moved into correction territory this month across many sectors (defined by a -10% sell-off in price). How you approach these types of opportunities is especially important. Buying and selling should not be done on a whim of emotions, but rather, through the execution of your trading strategies and investment plans that you have built for long term execution.
The underlying conditions in the market are murky right now and selling could continue. We will just have to wait for the price action, patterns, and support levels to form. What we do know, is that markets moving down is a normal function of price. How you respond to it and deal with it when these conditions emerge is the important part of the puzzle.
#TeamTackle
Chart of the Day
Citigroup Daily Candlestick Chart
Citigroup Inc. (Ticker: C) has continued it’s downtrend through the first four trading days of the weekl. When a stock is bearish, it creates opportunities for put buyers to speculate on downside price movement. Citi was also on this week’s options report. Review the report here: https://tackletrading.com/options-report-sep-19th-2020/
Video of the day
The Power of Put Options
If you missed last night’s webinar on the power of put options, watch the replay here.
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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