Government Reports Decimate The Market Again

THE WEEK

Government economic reports once again kicked the market in the shins.  In years past, these reports were verily a blip on the radar screen.  For the past year, we have witnessed a very nervous trading herd, and any little bump sends the Market reeling.  This past week it was the PPI Report on Wednesday.  The Market had been going up nicely.  The PPI

The announcement happened one hour prior to the Market opening bell.  The Price/Action tried to stay steady but gave out after an hour and went straight down the rest of the day.   

Thursday was not much better as prices continued to fall.  It wasn’t until Friday that they jumped up to near former trading levels.  Rough to trade in a Market of uncertainty.  Remember, the report wasn’t a bad one at all, which made it hard to predict the Market and harder yet to trade anything.

My advice is to keep a list of announcement dates and be aware of the Market impact of the various announcements.  On our webinars, we discuss these reports and the effect we believe they will have.

LOOKING AHEAD

No significant economic announcements this week.  But there will be lots of company earnings announcements.  I believe it will be a decent trading week. I usually don’t trade a stock prior to its announcement; instead, I wait to see what the herd’s reaction to the report is and then trade accordingly.

HOW AM I DOING?

Pretty good.  We have completed the first week of DATA, where I trade publicly, attempting to double my account in ten weeks.  I am right on track to do that for now.  My goal is a 7.2% increase week-to-week.  Last week my gain was 6.8%.  On track, but unfortunately, the gains were mostly from Quick and Dirty day trades.  Unless you have day trading rights and are willing to day trade, it was rough going because of the jittery Market and the up-and-down chaos.