And then came Thursday

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Hey traders, how are you today?
If your new here welcome
The markets today, well, lets talk about that
$DJI ( ▼ 1.61% )  
$SPY ( ▼ 0.56% )  
$QQQ ( ▼ 0.3% )  
$IWM ( ▼ 1.89% )  

Earlier today I heard from a trader that I know online, we chat once in a blue moon, seems like a good dude, good person. When he mentions “Spreads” what he is referring to is what we formally call “Bull Call Spreads” There are 4 different types of Vertical Spreads actually, but he’s talking about Bull Call Spreads like we often use here
My response is inside the blue box

Did you see that last line? How he can make money even when there’s blood in the market? That’s the difference between “cowboying” it VS those that use focused strategies for capital preservation

That trader there is someone that won’t ever get rich quick, but days like today won’t affect how they sleep at night. And on days that there isn’t blood in the streets, that type of trading rewards us greatly

I’ve said it a million times that “Capital Preservation beats Wealth Generation”
Another saying we have here at thoptionscoach.net is this:::
“We don’t allow trades to turn into investments”

Yesterday I wrote a post about Bull Call Spreads on $GE ( ▼ 3.77% )  
It had very specific instructions of what to do and what to do
I said it was in good soil, and I stand by that, today that soil got too much rain

$NVDA ( ▲ 0.15% ) had “mood swings” today but is now up 3.15% on the week
$CASY ( ▼ 1.9% ) toyed with my emotions all day long…. up / down / up / down
It reports earnings next Monday and looks to be stalling until then
This was earlier today before the NASDAQ bounced back some
$JPM ( ▼ 1.95% ) if it falls below $290.00 it will need some serious strength in the way of new buyers to prop it back up.. It’s close to that now, but that doesn’t mean the selloff in banks can’t continue

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When technical analysts look at charts one thing we look for is “Gaps”
Both up and down

When a Gap goes back to the price it was before the Gap we call that “Fill”
So Gaps can fill, about 70-80% of them do
There is no set time frame, they can be days, weeks, months and sometimes even years
Next we have what we call the “Curl”
“Curling” is not good, we don’t want to see a Curl
The reason is they are often longggggg / sloooowwwww / and drawn out
Right now SPY, which is the ETF for the S+P 500 is starting to Curl
If it should begin to bounce then it might make a box like we are so fond of
Again we don’t want a Curl, it would most likely be a long / slowwwww drop until it would fill its prior price back in MAY… Bounces are welcome here
Today the SPY went south of its 20 Day EMA
Traders will be watching to see if it falls down to the 50 Day SMA

They call the stock market “The Great Equalizer” for a reason
The market doesn’t know or care if we are::
Black / White / Yellow / Brown / Red / Short / Tall / Heavy Set / Buffed / Thin / Young / Old / From California or Cat Man Du

It only knows that it will do anything it can every time it can to try and trick us
And that is why we utilize strategies like Strangles, Ratio Spreads and Bull Call Spreads so often. That might not make us a million a minute, but we won’t ever lose sleep either

Tomorrow is another day
The Options Coach

This was earlier today before the NASDAQ bounced back some