Hey friend,
If markets rose in reaction to a hot CPI day, that likely means the “hot” print was already priced in – perhaps even priced in a bit too much.
But it might still be a little too early to tell. Markets typically need a few days to digest news like this – so we’ll just have to keep an eye out.
The Daily Direction
Note: All indexes closed higher yesterday, except the Russell 2000 which closed essentially flat. The Nasdaq was the strongest performer by far, rising by about 1.5%.
The Daily Nugget
Most traders underestimate the power of momentum in stocks.
Everyone “knows” the power of momentum in stocks. Trends – whether up or down – tend to be self-reinforcing.
And this isn’t just observation either, it’s been empirically proven, with the “momentum factor” shown to persist across both small and large-cap stocks in various stock markets.
Yet, when markets keep hitting new all-time highs – people get panicky, fearing it’s another bubble about to pop. So they sit on the sidelines and miss out.
Yes, these fears do have some basis in reality.
But as long as you stick to your stop losses, you’ll be fine. And you don’t have to miss out on all the gains to be had from the sheer power of momentum.
That’s why in just a few hours at 3 p.m. Eastern today…
Ross Givens is going LIVE for a masterclass that will allow you to target the strongest momentum stocks in this market…
The ones that are only gaining in speed as they rush upwards.
The strategy Ross will be showing could have had you up by double-digits in just the past couple trading days – and that could just be the start.
Spots are about to fill up, so make sure you click here to lock in your masterclass seat…
And we’ll send you the login details in just a bit.
Ross will see you soon.
The Traders Agency Team
