Good Morning traders!
Monday was a bit of a roller-coaster ride and it was easy to become a little overemotional about the price action. Please watch the video because I explain a little on how to avoid making those emotionally based decisions.
Today we have several economic reports that have the potential to move the market but I think it is unlikely that they will. We also have the FOMC meeting beginning today so keep in mind that normally the market can become very quiet while it waits for their decision on Wednesday afternoon. Personally, I think the market driver will be the 130 plus earnings reports happening today with the granddaddy of them all AAPL reporting after the market close. I may be wrong but I think AAPL has had enough time to make some course corrections and I expect we will see a very good report today.
Although at this time I don’t think there is a need to panic about a major correction I do think it’s very important that you are managing the positions that you are in. Remember you can always buy a stock back and for the cost of a commission, there is just no need to hold a stock that is not performing as you had expected and breaking down. Raise your caution level on buying new positions slightly until we have a few more clues on the direction of the overall market.
Have a profitable and productive day!
Trade Wisely,
Doug
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