Hey friend,
The short-term weakness continues.
Let’s see how the indexes have been moving
The Daily Direction
Note: Most indexes closed slightly lower yesterday, with the exception of the Russell 2000, which closed slightly higher. No change in any index directions.
The Daily Nugget
“Be greedy when others are fearful”
This is classic investing advice from Uncle Warren.
As traders, we need to adapt it to our much shorter timeframes.
And that means we don’t want to fight the trend per se – which is what will happen if you take the above advice at face value.
Instead, what we want to do is to recognize that oftentimes, the longer-term trend will be obscured by shorter-term downtrends.
And these shorter-term downtrends will be when many traders are fearful – especially the “weak hands”.
Couple the current short-term downtrend with higher uncertainty from the incoming Trump presidency…
And you have the recipe for a “fearful market” that we can and should take advantage of.
The Traders Agency Team
