Looks like bad news is bad news again

But it is still early in the day

Hi All,

Just some thoughts on today’s action in the markets. This morning we received the unemployment numbers and they were not pretty.

The market continued its downward trajectory and is now looking like chop. *I expect a drop towards the end of the day as markets close for the weekend and US traders head out for a summer weekend. Of course this is speculation. But why the drop, up until now markets have rallied on bad news as this provided support for the fed to cut interest rates? I think a lot of this has to do with the fed’s announcement that they would likely be cutting rates in September. Today’s information confirmed the labor market is getting worse, also to note some big tech companies announced future layoffs. Did the fed act too slow? Is the predicted soft landing now in jeopardy? Add in geopolitical tensions and the drums of war, what we have here is a soup of uncertainty. If there is one thing we all know, the markets don’t like uncertainty, thus down we go. $SPX 1week-1min.

So what is a trader to do. If you have long positions and you are worried that your portfolio is in the red, I would not fret too much.

Here is the quarterly chart since the pandemic, if you have been following George’s signals you should still have booked some nice profits.

But if you aren’t in the green and want to maximize your profit potential without bailing on your longs, check out the wheel strategy. Just note, follow the rules in a machine-like manner.

For myself, I have taken very few trades this week due to time constraints. For day traders using EMA clouds, you should have done quite well.

Trade safe, and only invest what you are willing to lose.