What's the average?

Hey traders, how are you today?

Here’s how the major indexes did
$DJI ( ▼ 0.38% )  
$SPY ( ▲ 0.55% )  
$QQQ ( ▼ 0.15% )  

Have you ever done something that everyone thought was so great but you didn’t think of it as your best work? I have..

Yearzzzzzzz ago I wrote a piece about Simple Moving Averages
A well followed trader at that time saw it, shared it, then I had people commenting how “great it was and easy to understand” I was amazed, I thought that my stuff about “bio nuclear engineering” would of gotten their attention!!! 🤣 🤣 
Nooo, I was very honored and humbled, and realized that moving averages is something many traders can over look. It’s not hard to do, especially when the markets are screaming north
But lately I keep saying that we are “Cautiously Optimistic” which we still are, just more cautious right now
Here’s a “Trader Tip” about Moving Averages…
Whether a Moving Average is Simple or Exponential doesn’t matter when it comes to “Recognized M.A.s”
A recognized M.A. is one that is simply known to be used by conventional technical analysis
Things like the 20 Day Moving Average
The 50 Day Moving Average
The 200 Day Moving Average
Those are all “Recognized” and are in most trading platforms by default

Often times when short term trading I’ll use the 23 Minute M.A. or the 47 Minute M.A.
There’s a method to the madness, maybe I’ll share on another day
But those aren’t recognized M.A.’s, see the difference?

Right now the SPY, which is considered to be “The Stock Market Barometer” is now 2.5% above its Recognized M.A. which is the 20 day M.A.
Before todays pullback it was about 3%

Many stocks are currently up higher off of their M.A.’s than that
J-Pow spoke today, there might not be another rate cut coming this year
The markets went south afterwards

The reasons never matter, stocks go up, stocks go down
The best that we can do is to be positioned properly when they do
It’s never a good idea to allow trades to turn into “investments”
And trade management in the way of cutting losses small never goes out of style

$TSLA ( ▼ 0.1% ) didn’t give us our 440 / 450 Bull Call Spread entry
Had it of though those spreads would of been a blessing in preventing any big losses
Again “Cautiously Optimistic”

Tomorrow is another day
The Options Coach



From “The Google” ( If I can find that piece I wrote I will, and then share it sometime, it goes a little more in depth than this )

Moving averages are technical indicators that smooth data by averaging points over a defined time period, highlighting trends and reducing volatility. The two main types are the Simple Moving Average (SMA), which gives equal weight to all data points, and the Exponential Moving Average (EMA), which gives more weight to recent data points, making it more responsive to current changes. Moving averages are used to identify trends, and traders look for moving average crossovers and support/resistance levels to generate buy or sell signals.