Hey friend,
The latest Core PCE data came in slightly below consensus.
This is the Fed’s preferred inflation gauge, and this could mean the Fed continues its focus on stimulating the economy and employment markets rather than fighting inflation.
The markets opened higher on this news – but have since pulled back over the course of the day.
We’ll have to see how the market continues to digest this data next week.
The Daily Direction
Note: All indexes closed higher yesterday, keeping all directions steadily upward.
The Daily Nugget
“A bubble is a bull market in which you don’t have a position.”
That’s a quote by Wall Street legend Bob Farrell, Chief Market Analyst at Merrill Lynch from 1967 – 1992.
It perfectly captures how our positioning in the markets influences our view of whether a rapidly rising market is a bull or a bubble.
If you’re heavily participating in such a market – you’ll be more inclined to think it’s a bull, because that works out better for you.
If you’ve already gotten out or substantially pared down your holdings – you’ll be more inclined to think it’s a bubble, because you’re waiting to aggressively buy in after the crash.
It’s all about incentives and how they cloud our perception.
That’s why having the expert guidance of someone like Ross Givens is so useful.
It helps us see through the bias caused by our own perception and make better trading decisions.
Right now, the data is telling Ross that the bull market is still in full effect and that there’s no immediate cause for concern.
Should that change, you’ll know about it.
In the meantime, be smart with your strategies so you can do great while others are doing good.
In a rising market, one of the smartest strategies is to focus your efforts on the leading stocks at the forefront of the market.
And here’s the market’s “code” you can use for spotting these stocks.
The Traders Agency Team
