Hey friend,
Lots of choppy price action lately.
As delayed economic data potentially starts getting released – expect more volatility.
Let’s see how markets have been doing.
The Daily Direction
Note: Indexes closed sharply lower – sending the short-term index directions for the S&P 500 and the Nasdaq, as well as the medium-term directions for the Russell 2000 – downward.
The Daily Nugget
Be very careful about extrapolating single-day moves to longer timeframes.
So many traders love to look at one-day market moves – and then make up a narrative about what it means for the longer term.
It happens both ways – both on the bearish and bullish side.
But barring a severe market crash, single-day moves are generally much more noise than signal.
And when you throw in a narrative on top of it – something the media loves doing – it just makes things even more noisy…
Because it’s designed to stir up investors’ emotions.
Don’t get caught up.
Always remember that single-day moves are not a trend – and have little to no predictive value.
Right now, the market is chopping around heavily.
One day it’s sharply up – the next it’s sharply down.
Each time, you get some sort of emotion-stirring narrative attached.
Eventually, a clearer trend will form – and Ross will be the first to let you know where it’s heading.
Until then, don’t let yourself fall for all these single-day narratives.
Have a good weekend.
The Traders Agency Team
