Today we stepped back a bit and looked at the charts to assess the damage done in this latest barrage of selling. Tuesday was vicious. From the outset, there was no room to bid in this market – the rough news from Europe and Asia really hammered any opportunities into oblivion. Furthermore, yesterday’s bounce was not robust, just a modest counter move against Friday’s massive selloff.
After I spoke about the charts, I welcomed T3Live founder Scott Redler, aka Red Dog, who taught us his famed red-dog reversal (RDR), a great setup and options trading strategy. He also talked about what he’s seeing in the markets; specifically, he’s looking for signs pointing to where the market is possibly washed out to the downside, but he emphasized that he will wait before making his move.
The audience had some excellent questions, which Scott and I both handled at the end of the webinar.