SPY/QQQ Plan Your Trade 7/11 EOD Followup

11 июл.

What can I say about today? It was also an emotional response to the CPI data falling in line with expectations.

How did this happen? The way I interpret this data, traders were literally gutted that the CPI number didn't come in hot. They wanted a hot number so the Fed may be pressured into making a move on rates.

I guess traders don't understand that we need the US economy to continue being the 900-lb gorilla compared to global economies. In fact, I want the US economy to continue to dominate global economies for the next 5+ years to grow our GDP and real wages and create an environment more similar to the 1990s—2010s US economy.

Far too many people simply don't understand how important it is for the US economy to continue to outperform global markets.

So, as you watch this video, please don't lose perspective of what is really taking place right now.

A. The US economy is strong.
B. The CPI data came in AS EXPECTED.
C. Nothing has really changed from yesterday to today.
D. Gold and Silver are moving higher as FEAR elevates (and demand for physical metals increases).
E. The US markets will start to fall back into line (Bullish) as earnings continue to report.

I urge you to stay cautious related to these big data days and understand emotions take control for many traders on days like today. Logic is thrown out the window when traders try to chase these types of trends.

Moves like this can be big winners - or massive losers. So, I always urge traders to PLAY SMART. Trade only 1/3 to 1/2 positions on big news days.

The trick to being a great trader is to never act in a manner that could blow up your account in 3 hours. If you want to do that, go to a casino and bet on RED or BLACK.

If you want to be a skilled trader, then learn to position your trades relative to your risk exposure and remember - tomorrow is another day full of opportunities.

At the end of the day today, the SPY Cycle Pattern nailed the move today. I did not nail the move with my expectations. Remember, I'm not 100% accurate all the time.

Still, I've called 14 of the last 15 days very accurately. Not bad - huh?

And if you think that is easy to do - give it a try yourself.