When The Trading Herd Gets Spooked

The Week
Another day, another dollar. That is exactly what my trading feels like this week. Just eking out
a “little” profit here and there. I am getting used to the chaos but can’t wait until the price/action
smooths out. I am ready for some boring type trading after all the drama. Here’s a picture of
how the price/action looked this week

Looking Ahead
This is the heavy week for earnings announcements. Companies listed on the USA stock are
required to report their financial status each quarter to their shareholders. Generally, the
earnings financial reports to date have been pretty solid.

So. why are so many companies seeing their prices fall upon the release of the earnings?

Well, as part of the reporting companies also give their forward thinking for the next earnings
cycle. Company executives are concerned about getting materials and goods. They are also
concerned about finding a solid work force. And inflation is like a sword hanging over all our
heads. The fear is consumers may start tightening their belts as prices go up. The moment
company executives start talking about their future prospects, you see sellers dumping their
shares and prices go down.

How do I Do This Week?
Better results this week – 6.4% for the week. This is nowhere near my normal gains for a week.
But when I look at the Market’s Price/Action, my little 6.4% looks pretty good.

Last week I said “May we live in interesting times.” We are seeing crazy times and “interesting”
trading. This week I am announcing I am tired of it. I am ready for the “Santa Claus” effect to
kick in and bring a smoother day-to-day Market.