Hey friend,
Nothing on the economic calendar today.
Next week though we get the big inflation numbers on Tuesday.
Given how hawkish the recent Fed meeting was, it could lead to a lot of volatility.
The Daily Direction
Note: Indexes closed higher yesterday but have been more mixed today. Nevertheless, yesterday’s move was sufficient to send all index directions back upward.
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The next $5 trillion boom is here (Wall Street just confirmed it).
The Daily Nugget
Don’t over index on single-day moves.
This is a very choppy period for the markets…
Especially as the Iran conflict is heating up again.
One day the market is up…
The next day it’s down…
With almost no clear direction.
In times like these, many traders overindex and overfocus on single-day moves.
Market closes higher? The trend must be strong.
Market closes lower? It must be breaking down.
But that is the wrong mindset to take.
Sure, we are not long-term investors who can afford to ignore almost all short-term moves…
But that doesn’t mean we should let our convictions falter because of one-day moves.
This is where the nuance comes in.
There are certain one-day moves that should change our conviction – as they are big enough to invalidate our trading hypotheses entirely.
But those are not the majority of them…
Which means that, in most cases we should be paying much less attention to one-day moves.
Just something to think about as you rest and recharge for the weekend.
The Traders Agency Team
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