Hey friend,
We got some new home sales data this morning.
At 607,000 – it came in below the expected 615,000 and last month’s 628,000. Nevertheless it wasn’t a big divergence.
We also got new consumer confidence data.
Again, while the numbers did come in lower than forecast and compared to last month’s figures, the magnitude of the difference was not that significant.
Tomorrow, we get the latest data on the Fed’s preferred inflation gauge.
Let’s see how markets have been moving.
The Daily Direction
Note: All indexes closed lower yesterday but opened higher this morning. However, no change in any index directions.
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The Daily Nugget
Know what your edge is good for.
A strategy can be good and still be wrong for the market you’re trading.
That trips people up all the time.
A breakout trader keeps forcing breakouts when the market has turned choppy.
A momentum trader keeps chasing strength when follow-through has dried up.
Then after a few losses, they decide the strategy stopped working.
But maybe it didn’t.
Maybe the environment changed.
Every edge has conditions where it tends to work best.
If your strategy depends on strong trends, you want a market that’s actually trending.
If your edge works best around clean catalysts, you want stocks where something specific is driving the move.
And if the broad market is messy, it can make sense to spend more time looking for names that don’t need the indexes to do all the work.
The question isn’t:
“What’s the best trading strategy?”
It’s:
“What kind of market am I in, and which of my strategies fits it best?”
That’s why it helps to know your own playbook.
Know what each setup is trying to exploit.
Know when it tends to struggle.
And don’t force your favorite strategy into a market that isn’t giving it much to work with.
The goal isn’t to have one strategy you force into every market.
It’s to recognize what the market is giving you – and trade the setup that fits.
The Traders Agency Team
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