Hey friend,
We got some leading economic indicators this morning.
It showed an unexpected dip into the negative territory – as both expected and last month’s figures were slightly positive.
Let’s see how the markets have been moving.
The Daily Direction
Note: All indexes closed higher yesterday but have been moving lower again today. However, no change in any index directions.
The Daily Nugget
Trade the evidence, not the opinion.
After a few rough sessions, everybody starts forming a view.
The pullback is almost over.
This is the start of something much worse.
Stocks are cheap now.
Stocks still have further to fall.
You can find a convincing argument for any of them.
The problem comes when you start trading the argument instead of what the market is actually doing.
If you think the bottom is in, but stocks keep losing support, the market is telling you something.
If you’re convinced another leg lower is coming, but breadth starts improving and leaders begin reclaiming key levels, that tells you something too.
You don’t have to predict the whole pullback correctly.
Watch what price does around support.
Watch whether more stocks are joining the selling or fewer.
Watch which names recover first when the market bounces.
Then update your view as the evidence changes.
Going into the weekend, there will be no shortage of people telling you exactly what happens next.
Listen if you want.
Just don’t confuse their confidence with evidence.
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.
