Why I'm Not Afraid of the Market Downturn

THE WEEK

Savvy people are always aware of their tax picture and find the best way to minimize the taxes owed.  One is their will close losing trades prior to the end of the tax year.  Then they close their winning trades after the New Year to lock in profits.  We saw this happen again as the year closed out.

LOOKING AHEAD

Do I think the Market will continue down?  Not really.  I attribute the downturn to tax planning with traders planning in which year to recognize their loss and gains.

We do have of couple of major economic announcements to watch for this coming week on the Thursday (the Consumer Price Index) and on Friday (the Producers Price Index).  Both of these announcements will impact trading because they are both major considerations of the FOMC and whether interest rates will be adjusted higher.

HOW AM I DOING?

Just OK dealing with the sell offs of this past week.  In retrospect I should have just traded some quick PUT buys to take advantage of the sell off.  On Thursday we start the first quarter of our Quantum Group trading.  If you are not familiar with Quantum, it is a group of high-level traders that meet daily to discuss the Market and the possible trades we see developing.  The goal of Quantum is to double our trading accounts for the quarter.  A daunting goal but one that is very possible as I have done it many times.  On Thursday’s Quantum session. We will be reviewing the ICE MAN set up to take advantage of the announcements happing after the Market closes that day.  The following week is when the heavy Earning Announcements begin. 

DEEP DIVE

Because I recognized a missed opportunity from earlier this week,

It is time to review PAYDAY TRADES

That take advantage of quick direction changes of the Price/Action of the Market

Be sure and sign up for the Investing Buddies Webinar on Thursday!