Warning: The Stock Market Will React

THE WEEK

Another week of uncertainty and wacky day-to-day trading on the market.  Not only were the prices up and down day-to-day but so was the trading volume.  The Market ended the week with a small rally but overall, the week was down -.3%. 

The comforting news is the accumulation/distribution stayed steady.  The week before, we saw money leave the Market and the start of a downturn.  Because no additional monies left, the downturn fizzled out.

That is both good and bad news.  I wanted the Market to drop because that’s when I get my biggest returns in a short time.  But because of my Pollyanna nature, I like when the Market goes up.  It feels good.

LOOKING AHEAD

This week at 2pm Eastern on Wednesday the Feds release their minutes from the last meeting.  There are probably no surprises in the release but many times the Market reacts - so be aware.  Powell stated he in the last press conference he still thinks we could have a soft landing.  All the reports coming in have been positive in nature.  As I said last week, the biggest disruptor to the Market and to our lives that I see coming will be the advent of converting to a digital money system and away from a cash society.  We are already seeing the signs and I know the conversation has been in play for some time.  Both Russia and China are aggressively pushing their own digital currency.  It will mean that the US Dollar which has been king for a long time will no longer be the standard of the world.

HOW AM I DOING?

I had good week considering the lack of a real Market direction evolving.  The Market was down  .3% and I had gains of 1.7% so I did 2% better than the Market.  I am not as pleased as I sound.  I do not consider that a great return.  On the other hand, I just entered a handful of new trades and many times the first few weeks are losses or barely break even.  

I had two people email with questions.  They either needed to pull funds from their account to pay expenses or to pay taxes.  Both questions had to do with how to handle the withdrawal and how much to leave in the trading account to be able to trade well moving forward.

This Thursday’s Deep Dive Focus

Margin and Trading Account Balances