Yesterday really put a damper on all the rally talk after a steep decline across the board. This is where our patience to jump into a trade pays off. Fighting off the temptation to take either bias, up or down, and letting things shake out.

One stock that look particularly weak in this environment is Home Depot (HD), which has been declining rapidly, and could be on its way to a key support level. A long play could be considered, however, a break of this level likely leads to a drop to a significant drop to another previous level of support… in my humble opinion.

If you want to find out what these levels are, as well as hear my breakdown of this setup then be sure to watch the video.

For more trading insight, as well as trades you can put on along with me, join the The Profit Machine. I take my students through the ins and outs of options trading to try and give them a better understanding of the market. Every week, I take my students step by step through the options trading strategy I have used for years to consistently profit during any market. We also put on trades during the learning process, meaning you’ll also earn while you learn.

Get a jump start on your options education and put yourself in position to win in 2023. Sign up today! Until then…

Good Luck!

Christian Tharp, CMT