Hey friend,
The latest Consumer Confidence numbers came in this morning – and they were below both expectations and last month’s numbers.
Let’s see how the markets have been moving.
The Daily Direction
Note: Indexes closed marginally higher yesterday and – with the exception of the Dow – opened lower this morning as well. No change in any index directions.
The Daily Nugget
“Show me the incentive and I’ll show you the outcome.”
~Charlie Munger
Everything in markets is ruled by incentives.
Analysts want attention.
Fund managers want to keep client money.
Executives want higher share prices.
Politicians want votes.
So whenever someone says something, ask:
What are they rewarded for making me believe?
That is why insider buying matters.
An executive can say the company looks strong.
They can praise the outlook.
They can call the stock undervalued.
But buying shares with their own money is different.
Now their incentive is obvious.
They make money if the stock rises.
They lose money if it falls.
Words tell you the story.
Insider buying shows you where the money is.
The Traders Agency Team
