Good morning everyone
The market is very happy this morning with the big earnings beat from NFLX. The market was expecting less than a $10 move but the stock is gaping nearly $20 higher this morning. At 8:30 we have a potentially market moving CPI reading. There are a couple other reports that can move the market but it’s unlikely that they will.
Just because the market is gapping up does not mean we should get all excited and chase this gap. Even with the opening pop, it should be noted that nothing has really changed as of now. The market is still in a downtrend and we continue to be stuck in a very narrow range. How many times have we seen in the last month a gap up that has been sold into over the next couple days? Fool me once shame on you, fool me twice shame on me.
There is absolutely no need to rush. Keep your emotions in check by planning your trades carefully and waiting for the trade entry to come to you.
Trade Wisely,
Doug
Comments are closed.