Hey friend,
The Fed acted as expected yesterday.
This morning, we got the usual weekly jobless claims data, which showed an unexpected decline to 205,000 (versus the expected 215,000).
A survey of Philadelphia manufacturers also posted an unexpected surge.
However, new home sales have fallen to a 3.5 year low.
The Daily Direction
Note: All indexes closed lower yesterday and opened lower today as well. All long-term index directions – with the exception of the Russell 2000 – are now downward.
The Daily Nugget
The 2Cs for trading during market turmoil are Conviction and Cautiousness.
On the surface, this can seem like one of the many trading paradoxes.
After all, aren’t Conviction and Cautiousness on the complete opposite ends of the spectrum.
In truth though, they’re not opposing – they’re actually complementary.
You need Conviction to go after the opportunities others aren’t seeing, or are too afraid to shoot for.
But you also need Cautiousness so even if the odds don’t work out, you won’t lose much.
Cautiousness is simple, you do that through proper stop losses that you stick to no matter what.
Conviction is a bit trickier.
How do you find true conviction in a market like this one?
That’s why Head Trader Ross Givens likes to “borrow” conviction instead.
And one of his favorite groups of traders to “borrow” conviction from during times like these?
The insiders…
Like the politicians snapping up defense stocks before a major geopolitical move…
Senator Markwayne Mullin bought Chevron stock four days before we extradited Maduro (and he did the same with Raytheon as well)
Or the corporate insiders piling into energy stocks.
Ross will share something tomorrow morning that will help you take advantage of this – so keep an eye out for that.
In the meantime, speaking of Conviction…
Click here to watch a video of Ross breaking down 2 high-conviction trades now…
The Traders Agency Team
