Smart Timing for More Profits

THE WEEK

The Market broke through another 52-week high early this week on high average volume.  Then the Price/Action stalled out for three days.  This is very typical when a new high level is achieved.  Traders are on a wait and hold to see if another upside breakout happens or if the trading herd starts taking profits selling positions which forces prices down.  There was one major economic announcement on Friday – PCE (Core Personal Expenditures).  This is an indicator watched closely by the FEDS.  It excludes Food and energy costs in its calculations.  Powell, the Fed Chairman, has emphatically stated the percentage gain must fall below 2% for him to feel inflation is under control.  The December figures was 2.6%

LOOKING AHEAD

We are looking at some more economic announcements this next week.  The most significant one is the Fed announcement on Wednesday at 2pm Eastern followed a ½ hour late by a press conference with chairman Powell.  At that time, we will learn what the Feds are doing with interest rates. I don’t believe they will increase at this time.  I am going out on a limb stating interest rate reductions could begin as early as March.  When that does happen, it will give a little boost to the economy and the stock Market. 

There are two other announcements this week that have affected stock Market prices in the past – The PMI on Thursday 8:30am Eastern and the January Unemployment Rate on Friday at 8:30am Eastern.  I believe both will cause a short term ripple of prices but don’t think either announcement will have an effect lasting more than a day.

The bigger factor effecting the Market right now is we are in the midst of Earnings Announcements season.

HOW AM I DOING?

Again, just ok.  Making a profit but nothing specular.  It is difficult to find good trades in the midst of earning announcements.  The increased Market volatility also is having a dampening effect on my trades.  I do see the light at the tunnel’s end, however.  As we finish with the heavy earnings season, more good trading possibilities are showing up for me.  I am feeling good about these possibilities.

This week’s Deep Dive is a sensitive subject for me.  A gentleman who was a former subscriber wrote a critical review of the Investing Buddies service.  He stated that anyone who followed a trading guru was a fool. 

Funny thing is I agree with him.

That is why I focused my service on you becoming a thinking trader and not just someone who trades what I trade.  I enter a trade and you make the same trade a few hours later, the results most probably will be quite different.  It is all about timing your entrances and exits.

This week’s Deep Dive subject

Timing your trades for maximum profitability