R-E-L-A-X

Back in 2014 the Green Bay Packers struggled to start their season.

They were only 3 years removed from Aaron Rodgers first MVP season that ended up with a Super Bowl win and Packer Nation was hungry for more.

Except they started the season 1-2.

The Packer fans were panicking. How could they hope to get back to the playoffs if they’re already an under .500 team?

So, in a press conference after game three, Aaron Rodgers gave all of them a little hope.

“R-E-L-A-X,” he said.

Sure, the season hadn’t started how they wanted, and they were already stuck with a couple of losses, but there was a lot of time left. And he was confident in his team.

I share this because on days like today, when the markets are dropping like an elevator, it’s important to R-E-L-A-X.

With the kind of trading system I have that’s so forgiving of these market pullbacks, then it becomes easy to hold through the negative noise and patiently wait for the bulls to return.

Look, we’ve had an awesome bull run the past two months.

And I expected us to start seeing a pullback today -- and probably a little more before November -- so I’m not worried.

I’m not panicking.

I’m relaxing.

By the way, the Packers went on to finish the season 12-4 and made their NFC Championship game. Rodgers wasn’t just whistlin’ dixie when he told them to relax -- he followed it up.

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NOTE: I know it’s easy to panic in pullbacks like today. If you’re worried about a trade you’re in or worried about the overall markets, please reply and I’ll share my thoughts. I can’t give you advice -- obviously -- but I will help the best way I know how.

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Employers added just 73,000 jobs last month, and prior months saw 'larger than normal' downward revisions.

Yahoo Finance

So, the job market is not-so-good.  In fact, it was reported as better than it actually was for the last two months so the numbers were revised downward.  This is frustrating, but not unusual. This sort of information is what the Fed needs to make its decision on interest rates.  Can you say, “a day late and 25 basis points too short?”

The economy is humming, but not as good as thought.

Yahoo Finance

So the sweeping tariffs have been sent out to the world.  The reaction is much like April 2nd, “Liberation Day.”  Savvy traders will be smiling on this red day.  We may have a few days of pullback, typical for August anyway.  After those “buy the dip” opportunities, I’m looking for a possible V-shape recovery again going into the fall. As always, time will tell.

Comments:  I’ll talk more about this in the Premium subscriber section below, but it shouldn’t be a surprise that the markets are having a big bearish red day today. I told the Premium subscribers on Saturday that the Almanac predicted a Bear Day.

I suspect a lot of people thought Trump would continue pushing back the tariff deadline, and it looks like he’s not -- which I’ve been saying that I thought he would hold steady here. So far this looks like a normal, healthy market pullback.

Meaning, there is no reason to panic.

I’m fine. I hope you are too. 

If you’re panicking, even a little, please email me. I want to help the best way I can (I know, broken record and all that jazz).

This is one of those days where it makes zero sense to jump in front of the market flush with a new trade idea. It’s better to sit-and-wait for a setup.

So, because I don’t have a sample trade idea to consider, I will be giving an analysis on the SPY and big levels to watch for support on this pullback -- that is, if you’re a Premium subscriber...