Hey friend,
Again, nothing on the economic calendar today.
We will get the minutes of the latest Fed monetary policy meeting…
And given that markets are now pricing in a rate hike as the Fed’s next move (notwithstanding the new Fed Chair)…
It could trigger some volatility in the markets.
The Daily Direction
Note: Indexes closed lower again yesterday but have been moving sharply higher today – sending the short-term direction for the Russell 2000 back upward.
The Daily Nugget
Skilled traders can hold multiple perspectives of the market at the same time.
Good trading is ultimately about judgment.
And judgment depends a lot on perspectives.
Most traders are too “locked” into a certain perspective.
They have one sort of view of the market…
And they stubbornly stick to that view – even when exposed to disconfirming information.
Skilled traders don’t fall for that trap.
They’re not interested in being right – in confirming their perspective…
They’re interested in making money, no matter what’s happening in the markets.
They can hold different perspectives of the markets in their heads at the same time…
Even if some of those perspectives contradict each other.
Right now, one perspective says the rally may be overheated…
Another says the bull market is going strong.
Both are somewhat true.
And that’s the environment we’re in now.
The index can look fragile…
While individual stocks are still making huge moves.
The rally can look questionable…
While specific names are breaking out on their own.
Both can be true at the same time.
That’s why a one-size-fits-all view of the market is so dangerous right now.
You don’t want a strategy that depends on every stock moving together.
You want one that can isolate the individual names with their own fuel behind them.
That’s why Head Trader Ross Givens will be sharing a highly controversial – yet devastatingly effective – stock picking strategy with you tomorrow morning.
So keep an eye out for that.
In the meantime, here are the details on two stocks that could double as the “smart money” pours in.
The Traders Agency Team
