Hey friend,
We got the usual weekly jobless claims numbers this morning, which came in both below expectations and below last week’s numbers.
More manufacturing activity survey data also came in, and just like the last one, it also surprised heavily to the upside.
However industrial production showed a surprising dip in March.
Let’s see how the markets have been moving.
The Daily Direction
Note: All indexes closed higher again yesterday and opened higher this morning – keeping all index directions in the green.
The Daily Nugget
Price = Fundamentals x Expectations.
A stock’s price is not just a reflection of how good the business is.
It’s a reflection of two things:
Fundamentals – what the company is actually doing..
And expectations – what investors already believe it’s going to do
That distinction matters.
Because a company can post great numbers… and still fall if the market expected even more.
And a company can post merely “okay” numbers… and still surge if expectations were low enough.
That’s why trading is not just about finding good companies.
It’s about finding situations where expectations are wrong.
When expectations are too high, even solid businesses can get punished.
When expectations are too low, even modest improvements can lead to powerful upside moves.
In other words:
The biggest stock moves often happen not when fundamentals change dramatically…
But when the market suddenly realizes its expectations were off.
And that raises an important question:
Who is most likely to know when expectations may be wrong before the crowd does?
The answer, of course, is the corporate insiders.
High-ranking execs – including CEOs and CFOs – who are actively buying stock to profit from their unfair advantage.
Tomorrow, Head Trader Ross Givens will share his proven strategy for following the best of these insider trades.
In the meantime, make sure you first watch his latest video on the rare BUY signal the market just flashed.
The Traders Agency Team
