Hey friend,
Yesterday’s Fed minutes, as expected, showed Fed members seeing rising inflation risks and increasing acceptance of a future rate hike.
Initial jobless claims came in slightly below expectations and below last week’s figures.
We also saw more housing starts and building permits, both of which outperformed expectations.
New data from S&P’s services and manufacturing gauges also came in.
Manufacturing outperformed expectations – but services underperformed slightly.
Let’s see how markets have been moving.
The Daily Direction
Note: Indexes closed higher yesterday but opened lower this morning. Still, all index directions remain upward.
The Daily Nugget
The most damaging trading belief is that markets are perfectly efficient.
Every business school graduate has had Efficient Market Theory drilled into their heads by professors who’ve never traded a single stock in their lives.
If you weren’t aware…
The idea behind Efficient Markets Theory is that all information out there in the markets has already been priced in…
Meaning there’s simply no “edge” to be exploited.
The best you can do is diversify and wait it out. There’s no point in trading.
Now, don’t get us wrong…
Diversifying is great – especially when it comes to your long-term accounts.
But believing that markets are perfectly efficient and there’s no point in trading is just leaving money on the table.
It ignores the basic nature of human psychology.
It ignores the objective track records of top traders who’ve absolutely crushed the markets year after year.
And it ignores the existence of corporate insiders who are legally allowed to trade their own company stock – despite being high-ranking executives at these companies.
Head Trader Ross Givens will share how you can exploit this tomorrow morning.
But in the meantime…
The Traders Agency Team
P.S. Planning to attend on a mobile device? Make sure you download the presentation apps now so you don’t miss a second of valuable information.
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