Hey friend,
The CPI report came in at 2.7% annually and 0.2% monthly – which was below expectations.
However, core CPI – which excludes food and energy – came in at 3.1% annually and 0.3% monthly.
This was above expectations.
However, market movements have been positive for the day, as the rise in goods prices indicated that tariffs may not be having as large an effect as anticipated…
Which means the Fed may have more room to cut rates.
The Daily Direction
Note: Indexes closed lower yesterday but have been moving higher today – sending all index directions back upward.
The Daily Nugget
Don’t confuse trading with investing.
There are a lot of traders out there, who upon having a position go against them…
Suddenly become investors.
Meaning, they ignore their stop loss…
And decide to keep holding on to the stock instead…
Rationalizing that they are “investing” in it.
That is the completely wrong mindset to have.
When you enter a position, you should be very clear on your desired outcome.
If it’s long-term investing – keep it that way. Buy, hold, and forget – only sell if things get truly dire.
If it’s trading, don’t confuse it for investing.
If a trading position hits your stop loss – cut it, ruthlessly.
You can be both an investor and a trader.
Most of us are.
But when it comes to your individual positions…
Be very clear what you’re doing.
Don’t switch back and forth between being a trader and an investor.
Keep them separate…
Because that’s how you stay profitable – in both the short and the long run.
The Traders Agency Team
