Let’s see how markets have been moving as we enter the middle of the trading week.
The Daily Direction
Note: Markets ended down yesterday after Moody’s downgraded 10 regional banks – stoking memories of the regional banking “crisis” earlier this year. Both the S&P 500’s and the Russell 2000’s short-term direction flipped negative.
The Daily Nugget
You can be both bullish and bearish at the same time.
Too often, traders constrain themselves by black-and-white thinking.
For instance, they describe themselves (and others) as either “bullish” or “bearish”.
But the truth is, you can be both bullish and bearish at the same time – WITHOUT any conflicts whatsoever.
It all has to do with time horizons. You can be bearish in the short-term and bullish in the longer-term (and vice versa).
This seems simple. But even a simple thinking shift like this can make a big difference to your trading in the long run.
You’ll become more nuanced – better able to interpret what’s really going on in the market. And that’s an invaluable skill.
The Traders Agency Team
P.S. Speaking of skill, don’t forget the importance of a sound strategy. Because it’s the sound strategy that provides the base that allows you to build your skill in the first place.
So, if you don’t already have a sound strategy to navigate the current markets, make sure you check out Ross Givens’ flagship “institutional” strategy for targeting big returns on fast-moving stocks.