# Do This to Identify Stock Buying

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Hey friend,

Consumer prices rose 0.4% in October, above the 0.3% economists expected.

Core inflation, which leaves out food and energy, came in at 0.3% for the month versus 0.2% expected.

Core prices have now risen 0.3% three months in a row, strengthening the case for a December rate hike.

**The Daily Direction**

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**Note:** Stocks resumed their bounce yesterday, with the Dow Jones and the Russell reclaiming all their positive index directions – while the Nasdaq saw its long-term direction move back upward.

**The Daily Nugget**

_**Watch what happens each time sellers show up.**_

You can spot buyers getting stronger even when the stock looks like it’s going nowhere.

Say a stock has hit $50 three times this month. Every time, sellers knock it back down.

It’s tempting to write it off. Why watch a stock that can’t get past the same price?

Take a look at where the selling stopped.

The first time, the stock fell to $42 before buyers stepped in.

The next time, they were willing to pay $46. On the third try, it barely dipped to $49.

Anyone waiting to buy at $42 again hasn’t had a chance.

Other buyers keep getting there first, and they’re willing to pay more each time.

That doesn’t mean $50 will give way.

But if all you wrote down was “failed at $50 again,” you missed what changed.

Next time a stock keeps hitting the same ceiling, take your eyes off the highs for a minute.

Look at the lows.

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_The Traders Agency Team_