Hey friend,
No major economic reports today, but the calendar gets busy later this week.
Wednesday brings consumer inflation data, followed by producer inflation, retail sales and weekly jobless claims on Thursday.
Those reports will give us a clearer picture of price pressures and consumer spending heading into the Fed’s next meeting.
Let’s see how the markets have been moving.
The Daily Direction
Note: All four indexes finished higher on Friday but opened mixed this morning. The short-term direction for the Dow turned back upward.
The Daily Nugget
Waiting to break even can get expensive.
“I’ll sell when it gets back to what I paid.”
That sentence can keep your money tied up in a losing trade long after your reason for buying has disappeared.
Say you bought a stock at $50. It’s now at $42, and the setup that got you into the trade has failed.
But selling means accepting the loss. So you decide to give it more time.
Suddenly, $50 becomes your target for one reason: that’s where you get to leave without feeling like you lost.
Meanwhile, the stock has to climb almost 20% just to get you there.
It could recover. But your purchase price gives you no reason to expect that recovery.
Before you give the trade another week, ask yourself:
“If I had this money in cash today, would this stock still qualify as a trade?”
If the answer is no, waiting to break even deserves a harder look.
Holding also has a cost. Your money stays committed while other stocks build stronger setups.
You don’t have to jump straight into another position. You do need a better reason to keep holding than wanting your money back.
Judge the stock by the buying and selling happening now. Follow the exit rules you established for the trade.
Your next decision should give your capital the best chance from here.
The Traders Agency Team
