ECB Comments Turn Tide

Futures went from -7 handles to up 10+ handles in a few minutes when ECB President Mario Draghi said policymakers will do whatever it takes to preserve the Euro. I guess Europeans can take their usual six week vacations, head to the beach, and have fun watching the Olympics. No need for budgets, discipline, or work ethic; the bills will be paid. They might as well give out credit cards to each nation, and say, pay $1-$5 bucks a month because won’t shut you down.

Anyway, it’s earnings season, and some stocks are getting the smack down and others are being rewarded depending on their reports. Therefore, I don’t see many patterns that are getting me excited to run and sink my teeth into. The indices back tested the broken trend line and failed yesterday, but I think it will have another chance today.

Micro resistance stands at 1343, but the real line in the sand to keep pressure on the bulls is 1350-1354. If the markets reclaim this area, we will see more of the same because we will be back the channel formed during summer trade. Later resistance stands $1358-1362.

Lots of very experienced guys I talk to are having a very tough time in this tape. If that’s you, take a step back and do less. It’s very easy to lose discipline, push buttons, and create a bigger hole that is not necessary. Only re-enter the market when things have more clarity and when you start to see things better.

I have advocated taking some put options if you have a bearish thesis instead of shorting indices. This prevents any unforeseen movements caused by “Stimulus News” and insures your risk is premium paid.

We can’t control the world or its policies—only our approach to our own financial health and the markets. Anger and frustration will get you only angry and frustrated.

Disclosure: Scott Redler is long SPY puts

About Scott Redler 367 Articles

Scott Redler is the Chief Strategic Officer of T3 Live. He develops all trading strategies for the service and acts as the face of T3 Live. Mr. Redler focuses on thorough preparation and discipline as a trader.

Mr. Redler has been trading equities for more than 10 years and has more recently received widespread recognition from the financial community for his insightful, pragmatic approach. He began his career as a broker and venture capitalist where he was able to facilitate relationships that led him into trading. Beginning his trading career at Broadway Trading in 1999, Mr. Redler moved on with Marc Sperling to Sperling Enterprises, LLC after establishing himself as one of the best young traders in the firm. As a manager at Sperling Enterprises, continued to trade actively while working closely with all traders in the firm to dramatically increase performance.

Mr. Redler has participated in more than 30 triathlons and one IronMan, exhibiting a work ethic that also defines his trading. His vast knowledge and meticulous attention to detail has led to regular appearances on CNBC, Fox Business, Bloomberg, and he is a regular contributor to Minyanville and Forbes’ Intelligent Investing blog. He has been quoted in the Wall Street Journal and Investor's Business Daily, among other publications.

Scott received a B.B.A. in Marketing/Finance from the State University of New York at Albany, graduating Magna Cum Laude from Albany's School of Business.

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