Hey friend,
Data on the Fed’s preferred inflation gauge just came out this morning.
We’ll see how the market digests this over the next few days.
The Daily Direction
Note: It was a positive day for the indexes yesterday – albeit with not much action. Still it was enough for both the short and medium-term directions of the Russell 2000 to flip back upwards.
The Daily Nugget
After big news hits the market, most traders don’t understand how to read the resulting price action.
Sure, the market’s immediate reaction to a piece of big news – like this morning’s PCE gauge – is extremely obvious.
But what most traders don’t understand is that the immediate reaction may end up being the complete opposite of its final reaction…
Causing them to get caught completely off guard.
That’s why being able to correctly interpret price action is one of the highest-value trading skills out there.
The issue is that it takes a lot of time to develop this skill…
And even when you get competent enough at it, there are still thousands of stocks you need to filter down.
That’s why it’s so useful to have the guidance of someone like Ross Givens…
Because you can get price action “shortcuts” like this one right here.
The Traders Agency Team
