Your Daily Bit of Wall Street Wit & Wisdom

D-Day

U.S. Army troops in an LCVP landing craft approach Normandy’s “Omaha” Beach on D-Day in Colleville Sur-Mer, France June 6 1944. h/t Army Signal Corps Collection/U.S. National Archives/Handout via REUTERS/File Photo

“Once the fight starts, you forget what the fight was about.”
— Tom O’Brien

Each day buyers and sellers slug it out in the market as they struggle for control of price direction.

On this 75th anniversary of D-Day, let’s never forget those who fought for freedom then.  And let’s remember to do what we can to fight to protect freedom today.

With gratitude,

Steve

Your Daily Bit of Wall Street Wit & Wisdom

whipsaw

Two men whipsawing lumber in British Columbia circa 1898 h/t Eric A. Hegg

“Consolidations are traders’ markets, in both directions.”
— Steve Rhodes

Markets move between areas of support (demand) and resistance (supply).  In a large market consolidation, whipsaw action is not unusual.  It provides opportunity for nimble traders to profit from moves up and down.

Option buyers are the only ones who possess the Superleverage power of unlimited profit potential with an always known and strictly limited risk.

Good luck in your trading!

Best regards,

Steve

Your Daily Bit of Wall Street Wit & Wisdom

market correction

h/t Adobe Stock Images

“A correction is any move which is against the prevailing trend, regardless of magnitude…Let go of the silly 10% notion.”
— Tom McClellan, @McClellanOsc

Yesterday afternoon, a notification popped up on my phone.  It was from a financial media outlet reporting the NASDAQ dropped more than 1% on the day to enter “correction territory,” as regulation fears battered big Tech.

Such reporting is a pet peeve I share with market technician Tom McClellan.  If the current market’s primary trend is up, the correction began just over a month ago.  If the prevailing trend is now down, a coming rebound will represent the correction in price ahead of a move to lower lows.

I may be a stickler about it, but you should have the correct understanding of corrections.

Best regards,

Steve