Was the brief pullback after Powell’s comments on Wednesday just a blip? The recent market movements certainly seem to suggest so (at least on the surface).
So let’s see how markets have been moving as we start a new trading week.
The Daily Direction
Note: All indexes except the Russell 2000 closed higher to end last week. No change in any index directions. However, the short-term direction for the Russell 2000 is right on the brink of dipping back downward.
The Daily Nugget
Another trading paradox – you have to be comfortable both selling into strength AND adding to winning positions.
When you sell into strength, i.e. selling your positions even as they continue to rise – you may be leaving money on the table. Difficult yet often necessary.
When you add to your winning positions, you know you’re buying in at higher and higher prices – i.e. willingly taking on reduced profit potential with each additional transaction. Also difficult, yet also often necessary.
The paradox here is that you can’t do both for the same position at the same time.
You can’t both sell into strength and add to your winning positions for the same stock. It doesn’t make sense.
The key here is knowing when to do each one. And that’s where expert guidance from someone like Ross Givens is absolutely invaluable.
But here’s the thing – to do any of the above, you have to have a winning position in the first place.
And right now, with tech stocks heating up…
One of the easiest ways to target a big winning position in your portfolio is by taking advantage of Ross Givens’ #1 AI stock.
The Traders Agency Team