Time to see how the markets have been moving after the latest inflation numbers came in slightly higher than expected due to the increase in energy prices.
The Daily Direction
Note: Indexes closed lower or flat yesterday before the release of today’s consumer inflation data. After the release of the inflation report, most indexes have gotten off to a positive start, with the S&P 500, Dow, and NASDAQ flipping their short-term directions back upward after the opening bell.
The Daily Nugget
Individual traders have one powerful advantage over big institutions – speed and flexibility.
Many people are perpetually in awe of the big institutional funds.
And yes, they do have immense power to move markets – something that individual traders will never have.
But you have one powerful advantage they don’t – speed and flexibility.
Remember, they’re investing other people’s money, which always creates a certain level of bureaucracy.
You can go to 100% cash in a single day if markets take a turn for the worse – they have to always be at least partially invested.
You can enter a position one day and exit the next – if they do that, they’ll have a lot of explaining to do.
You can switch strategies in an instant (although you probably shouldn’t) – they have pre-determined mandates they must stick to.
So, don’t underestimate yourself – use your advantage instead.
And if you want to see how you could leverage your advantage to exploit the market-moving power of these big institutions…
The Traders Agency Team