Hey friend,
Yesterday’s Fed minutes showed a growing group of Fed members who believe rate hikes might be warranted given the inflation picture.
The usual weekly jobless claims spiked to 219,000 above expectations and above last week’s figures.
We also got the Fed’s preferred inflation gauge – the PCE – this morning, albeit this was the numbers for February.
It showed inflation coming in at 2.8% a year – in line with expectations – but still far above the Fed’s 2% target.
Tomorrow morning, we will get the CPI data for March.
The Daily Direction
Note: All indexes closed sharply higher yesterday on news of the ceasefire. And while they opened mixed today, there’s no change in any index directions.
The Daily Nugget
Price action can also show you how to manage risk.
Risk management in trading comes down to two main tools…
Position sizing and stop losses.
But in order to use those two risk management tools effectively…
You need to be able to gauge just how risky a stock is beforehand.
So the question is – how do you do that?
Price action can give you the answer.
An experienced trader – like Head Trader Ross Givens – can glance at a stock chart.
And without knowing its name or even the sector it’s in…
Can give you a pretty accurate gauge of just how risky that stock is…
And how to best manage your risk.
That also means – if you don’t understand how to read price action…
You don’t know how to properly manage risk – which is a big reason why traders fail to do so.
That’s the power of price action – it is also an effective way of gauging risk.
But of course, just as it can gauge risk…
It can also help you spot opportunities.
Tomorrow morning, Ross will show you his most powerful price action strategy of all time…
So keep an eye out for that.
In the meantime, here’s one trade that’s absolutely HEATING UP.
The Traders Agency Team
