Traders, Avoid These “Long Weekend Dangers”

Hey friend,

The official employment numbers came in this morning.

It showed the economy adding 162,000 jobs for August – far ahead of the expected 53,000.

The unemployment rate stayed steady at 4.1%.

Let’s see how the markets have been moving.

The Daily Direction

Note: All indexes closed sharply higher yesterday but have been more mixed today. However, no change in any index directions.

The Daily Nugget

Don’t let the long weekend talk you into a trade.

A long weekend gives traders something they don’t always handle well:

Too much time to think.

Maybe you’re watching a stock that looks okay on Friday.

You’re not ready to buy it yet.

But then the market closes for three days.

You read more about the company.

You look at the chart again.

You start imagining how much money you could make if it takes off next week.

By Tuesday, you can feel a lot more excited about the trade…

Even though the stock itself hasn’t changed at all.

That’s especially dangerous when the market has been quiet and good setups are harder to find.

After a while, you start lowering the bar just because you want something to trade.

So before the market closes today, decide what would actually make the stock a buy.

Maybe it needs to break above a certain price.

Maybe it needs to hold support.

Maybe you just need a better setup.

Then go enjoy the weekend.

When the market opens again, make the stock prove it deserves your money.

The Traders Agency Team