Fear and Greed: The Market's Silent Killers

THE WEEK

A SURPRISE TO ME - THE Fed interest rate decision on Wednesday did not impact Market prices much.  Prices did go up as I had predicted.  The July PMI release on Thursday did not immediately impact the Market prices, however, for most of Thursday prices dropped.  It was the release of July unemployment figures that hit the Market immediately.  Prices gapped down on opening and plummeted the rest of the day

LOOKING AHEAD

There is only one release that I feel could impact Market prices.  It is the PMI for non-manufac­­­turing on Monday.  I think the effect will be mild if at all. I am more concern with the fear factor of traders. We are already at low for monies in the Market place.  But if the trading herd gets nervous and starts selling off their positions, prices will drop even harder  Here is a chart of the VIX which measures fear and greed.  It is an inverse chart I have named the various levels

HOW AM I DOING?

I had to quickly adjust my trades when the Market dropped.  It was a good week and my trading account is up 3.6% for the week.  The S&P 500 dropped and was down (2.0%)   I am pleased with my results but realized I could have done much better if I reacted faster.  It was difficult as I had two webinars I gave plus a one-on-one mentoring session.

Last week’s webinar we discussed the daily routine to spot changes in the Market

The Subject for Thursday’s Webinar

Adjusting Your Trades Quickly

And Trading in a Down Market