Hey friend,
Today’s economic reports showed slower business growth, but manufacturing held up better than expected.
October’s initial manufacturing PMI came in at 56 versus a 55.3 forecast.
Services registered 57.9, just below the 58 expected.
Both fell from September, though readings above 50 still indicate expansion.
Consumer sentiment also beat forecasts, with the University of Michigan’s final October reading at 48 versus 46.3 expected.
Let’s see how the markets have been moving.
The Daily Direction
Note: Indexes closed lower yesterday and opened lower this morning as well – although they’ve been recovering some ground through the day. No change in any index directions.
The Daily Nugget
What you paid won’t make the stock go up.
“I’ll sell when I get back to even.”
After this week’s tech selloff, you may have said that yourself.
It feels fair. You just want your money back.
Say you bought a stock at $50. Now it’s at $40.
You plan to sell at $50. But why should it rise to that price?
The fact that you paid $50 won’t help it get there.
This is where traders get stuck. They stop asking if the stock is still a good trade. They just wait for the loss to go away.
And while they wait, they may ignore signs that it’s time to get out.
A drop alone doesn’t mean you should sell. The stock may still fit your plan.
But if your plan said to sell at $40, don’t change it just to avoid taking a loss.
Before the weekend, look at one stock you hold at a loss.
Ask: “Why am I still in this trade?”
Maybe sales are growing. Maybe the stock is still above the price where you planned to sell.
Those are reasons you can check.
“I want my money back” tells you how you feel.
It tells you nothing about what the stock will do next.
The Traders Agency Team
P.S. Don’t forget that every Monday at 9 a.m. Eastern, Head Trader Ross Givens goes LIVE on his YouTube channel to break down the markets in real time and highlight overlooked opportunities.
It’s completely free so make sure you don’t miss the next one.
Use this link to join next Monday at 9 a.m. ET.
Have a good weekend.
