“Steal” Others’ Trading Advantages for Yourself

Hey friend,

We got the Fed’s preferred inflation gauge – the PCE index – data this morning.

Most figures were in line with expectations – with the exception of Core PCE, which came in lower than estimates.

The monthly figure also showed a 0.1% fall, though PCE was still higher 3.7% on an annual basis.

We also got personal income and consumer spending.

The former came in slightly below expectations while the later came in as expected.

And of course, we got the usual weekly jobless claims, which at 197,000, was higher than last week’s figures but lower than expected.

Let’s see how the markets have been moving.

The Daily Direction

Note: All indexes closed sharply lower yesterday but have bounced this morning. However, no change in any index directions.

The Daily Nugget

Use others’ advantages to your advantage.

You do not need to possess every advantage yourself.

Sometimes, the better move is to position yourself where someone else’s advantage can pull you forward.

Take the big funds.

They have teams of analysts…

Better access to information…

And enough money to push a stock higher for weeks.

You cannot compete with that firepower.

But you can watch where it is going.

When a fund begins building a huge position, the buying often leaves clues in the price and volume.

Their advantage becomes your signal.

The same principle applies elsewhere.

A sector specialist may understand an industry better than you ever will.

A supplier may see demand improving before Wall Street does.

A major customer may reveal which company is quietly winning contracts.

You do not need to know everything they know.

You need to recognise what their actions are telling you.

The Traders Agency Team