Hey friend,
This week, we get some big jobs data.
But for today, all that’s on the economic calendar are factory orders, which came in far above expectations.
The Daily Direction
Note: Indexes closed higher to end last week but have been trending downward today. Still, all index directions remain upward.
The Daily Nugget
Ask yourself – are you part of the crowd prone to getting flushed out?
Most traders know what it feels like.
A stock breaks out. You buy.
It pulls back a little. You panic – then sell.
Then, almost immediately, the stock turns around and rips higher without you.
That is not random.
Markets have a way of flushing out weak hands before the next move higher.
Sometimes it happens naturally.
Sometimes big players help it along by pushing price just low enough to trigger stops and scare late buyers out of their positions.
Then once those sellers are gone…
Supply dries up. The smart money steps back in.
And the next leg of the rally begins.
This happens again and again.
The crowd buys the obvious breakout…
Gets shaken out on the first pullback…
Then watches the move happen without them.
Do not be part of the crowd that gets flushed out.
Instead, be part of the group that can take advantage of those getting shaken out.
Check your inbox tomorrow morning for more about that.
The Traders Agency Team
