Don’t Waste a Good Pullback

Hey friend,

Nothing on the economic calendar this morning.

This week though, we get the latest data on the Fed’s preferred inflation gauge – the PCE Index.

Let’s see how the markets have been moving.

The Daily Direction

Note: All indexes closed higher yesterday to end last week but have been generally lower today (with the exception of the Dow, which has seen its short-term direction return to upward territory).

Check This Out

America just made a massive $2 trillion gamble. Here are 3 stocks that could profit.

The Daily Nugget

Pullbacks can be useful.

When everything is going up, a lot of stocks look good.

Some deserve it.

Others are just getting carried along with the market.

You usually get a better read once the selling starts.

After a few red days, some stocks crack quickly. Others give back most of their recent gains.

But every so often, you’ll find a stock that just refuses to come down much.

Maybe it holds its breakout.

Maybe buyers keep showing up around the same price.

Maybe the market has a lousy day and the stock barely moves.

Those are the names worth writing down.

The market has just put them through a little stress test, and they handled it better than most.

That doesn’t make them automatic buys.

But it does make your watchlist a lot easier to build.

So on the next ugly market day, don’t spend all your time looking at what got crushed.

Have a look at what didn’t.

You may learn more from the stocks holding their ground than the ones making all the noise.

The Traders Agency Team