The third-quarter pullback took another pause yesterday.
With just one more trading day to go until the fourth quarter – historically the strongest quarter of the year – everyone is looking to how the markets will move to get some insight on any new direction.
The Daily Direction
Note: All indexes closed higher yesterday – but not enough to cause any change in any index directions.
The Daily Nugget
Beware recency bias when evaluating your next move.
Recency bias is the tendency for our brains to place more weight on recent events.
In other words, we are overweighting certain pieces of data – even when said data doesn’t deserve that extra weight.
And that can cause us to misevaluate the situation – and miss opportunities.
The current third-quarter pullback is a good example of that.
History tells us the market has a good chance of rallying in the fourth quarter.
And yet, many traders will find themselves hesitant to take action when the rally begins.
Why? Recency bias…
Which causes them to overweight the third-quarter pullback…
And underweight the literal decades of data that supports a fourth-quarter rally.
That’s why Ross Givens is going LIVE tomorrow at 11 a.m. Eastern to show you his top strategy for targeting the biggest winners in any potential rally.
Don’t fall for the recency bias trap.
And put yourself in the best position for a traditionally strong quarter before the market opens on Monday.
The Traders Agency Team