Treasury yields are continuing to retreat, corporate earnings are outperforming expectations, and market indexes are mixed.
Let’s see how the markets have been moving.
The Daily Direction
Note: Most indexes – except the Nasdaq – closed lower yesterday. But it was far more muted compared to the previous few days. No change in any index directions.
The Daily Nugget
Understand which current catalysts have the potential to influence the current market.
We’ve talked a lot about the importance of price action on this newsletter.
And to be sure, learning how to interpret price action is a key skill that all successful traders have.
But that alone is not enough.
Because at every moment, there are always a few major catalysts that have the potential to influence the market.
They can be Fed monetary policy decisions, inflation data, jobs data, or corporate earnings.
There are typically more than one – and in many cases, they contradict each other.
This is why the market doesn’t seem to make sense a lot of the time – it’s the competing catalysts.
And it’s also why, the more catalysts you understand, the better you’ll be able to interpret price action and see where the market is likely heading.
The Fed has undoubtedly been the biggest market moving catalyst for the past couple years.
But right now, we’re in the middle of a big “seasonal” catalyst – earnings season.
And it means that – no matter what’s happening elsewhere – you could still take advantage of this catalyst…
And use it to target fast profits in individual stocks.
So, if making money despite the hawkish Fed sounds good to you
The Traders Agency Team