Let’s see how markets have been moving.
The Daily Direction
Note: Markets pulled back a little yesterday as they digested the Fed’s minutes and weaker economic data from China. Yet, all index directions remain firmly in the green.
The Daily Nugget
Price action can predict the “fundamentals”.
Many investors and traders are always concerned about the “fundamentals” of a stock – earnings, growth outlook, and whatnot.
And to be clear, those are indeed important.
But many are placing these fundamentals over the price action – or even disregarding the price action entirely.
This is a huge mistake.
Because you see, price action – beyond being absolutely necessary for making fast gains – can also predict many of these fundamentals.
That’s why so many fundamental “surprises” don’t seem to move the price when they hit the news – they had already been baked into the price action prior.
This means if you know how to read price action, you can actually predict many of these fundamental changes (or at least whether they’re positive or negative) before most.
That’s why for Ross Givens – and many other legendary traders – price action IS the core fundamental.
Price action is what allows him to spot when the institutional money could be about to flood into a stock and send it surging…
The Traders Agency Team