Hey friend,
We got more consumer sentiment data this morning.
Surprisingly, it came in both ahead of expectations and last month’s numbers.
Let’s see how the markets have been moving.
The Daily Direction
Note: Indexes bounced yesterday. And while they opened higher this morning, they have generally been moving lower today – sending the medium-term direction for the Russell 2000 downward.
The Daily Nugget
The goal is to stay clear while everyone else gets emotional.
Volatile markets make people do stupid things.
They chase a stock because it jumped.
They dump a good position because it dropped.
And they throw out a plan they were perfectly happy with yesterday.
That is where most of the damage comes from.
A sharp move tells you something changed.
It does not tell you what to do next.
A big drop is not an automatic sell.
A big rally is not an automatic buy.
Sometimes the right move is to wait.
Sometimes it is to cut your size.
Because when stocks start swinging harder, your normal position can suddenly become too big.
So trade smaller.
Give the position more room.
And do not force yourself into every move.
There will always be another rally…
Another pullback…
Another setup…
Missing one trade is annoying.
Getting sucked into a bad one because everyone else is panicking is much worse.
Have a good weekend.
The Traders Agency Team
P.S. Don’t forget that every Monday at 9 a.m. Eastern, Head Trader Ross Givens goes LIVE on his YouTube channel to break down the markets in real time and highlight overlooked opportunities.
It’s completely free so make sure you don’t miss the next one.
Use this link to join next Monday at 9 a.m. ET.
Have a good weekend.
