Hey friend,
We got some consumer confidence data this morning.
And while it was a significant decline from last month’s numbers, it did come in slightly above expectations.
Let’s see how markets have been moving.
The Daily Direction
Note: All indexes closed higher yesterday, and with the exception of the Russell 2000, also have been moving upward today. The short-term direction for the Russell 2000 fell into downward territory.
The Daily Nugget
Don’t let last week’s market become this week’s opinion.
After a rough stretch, traders can get stuck in the mood of the selloff.
A few bad days go by and suddenly every bounce looks suspicious.
Every green day feels temporary.
Every bit of strength gets treated like a trap.
That’s recency bias at work.
The market may already be changing, but your opinion is still anchored to what just happened.
And sentiment usually lags.
People tend to get bearish quickly when prices fall.
They usually need a lot more proof before they feel comfortable turning bullish again.
So if the market starts stabilizing or rebounding while retail sentiment is still getting worse, don’t automatically assume the crowd has it right.
Look at the tape.
Look at whether support is holding.
Look at whether fewer stocks are breaking down.
Look at whether leaders are starting to act better.
The key is to let your view update with the market.
Not with the memory of last week.
A pullback can teach you useful things.
Just don’t let it train you to stay bearish after the evidence starts changing.
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.
