Hey friend,
Yesterday brought solid economic numbers – and a brutal market selloff.
Jobless claims came in at 189,000 versus 197,000 expected.
Worker productivity rose at a 3.6% annual rate in the third quarter, beating the 2.9% forecast.
But that didn’t stop traders from dumping stocks.
The S&P 500 sank 4.4% and the Nasdaq plunged 5.5%, with chip stocks taking the worst beating.
It was a rough reminder that a healthy economy doesn’t mean a healthy stock market (and vice versa).
The Daily Direction
Note: Yesterday was a bloodbath in the markets. Almost all index directions are now in downward territory.
The Daily Nugget
You can sell a stock and still believe in it.
After a selloff like yesterday’s, it’s tempting to defend a stock you own.
You know the business. You like its products. You still think it has a bright future.
So when the stock hits the price where you planned to sell, you start making excuses.
“The company is still doing great.”
Maybe it is. But that doesn’t mean you should keep taking losses on this trade.
A strong business can have a weak stock for months. And while you wait for the market to agree with you, your loss can keep growing.
Selling feels hard because it seems like you’re giving up on the whole idea.
You aren’t. You’re putting a limit on how much that idea can cost you.
You can still follow the company after you sell. If the stock settles down and a fresh setup forms, you can buy it again.
You don’t have to own it through every drop to earn that chance.
Stick to the exit you planned.
Liking the business is no reason to let a small loss get out of hand.
The Traders Agency Team
P.S. After yesterday’s selloff, it’s hard to know which stocks deserve another look and which are in real trouble.
Join Head Trader Ross Givens LIVE this Monday, November 9, at 9 a.m. Eastern. He’ll break down the market on YouTube, show you where the damage is worst, and point out the stocks still holding up.
You’ll see how he’s approaching the week before the opening bell – without having to guess what the headlines mean for your trades.
It’s free. Click here to join Ross live Monday at 9 a.m. ET.
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