The Golden Opportunity!

THE WEEK

Another economic announcement threw a wrench in the Market this week  This time it was the FOMC announcing a .25 interest rate hike.  Even though we were aware of the hike prior to the announcement, it still caused the Markets to dump.  To be honest, I thought the Markets would hold up better this time.  Strangely, they held steady through the press conference.  Then five minutes after Powell left the mic, the dump began.

LOOKING AHEAD

There are two major economic announcements this week:  CPI on Wednesday and the PPI on Thursday.  Both announcements are at 8:30am Eastern.  Over the past year these announcements have caused high volatility in Market prices.  Most resulted in big price drops and the start of a cycle of downs.  I do not believe this time the reaction will be as strong one way or the other.  There is a lot less trading fear right now. Below is a chart of the VIX which mathematically measures trading emotions.  The higher the price, the more prevalent fear and apprehensive is.  Right the count  is the lowest it has been for over a year.

HOW AM I DOING?

It was a great week for me.  My two week gains topped over 11%.  I learn to trade in the dot.com chaos and have always gravitated towards down Markets.  I understand the fear when a dump starts.  Once I conquered my own fear, I realized dumps are a golden opportunity for profit taking.  Love the Down!

Thursday’s webinar DEEP DIVE topic this week is on Iron Butterfly trades.  

Look forward to meeting you and to seeing you become a successful Thinking Trader.