≈ The news drive the market. ≈
When a market is trending upward it seems that negative stories and often brushed aside. When a market is trending downward it seems every bit of negative news is received with short-term panic. One such storyline that has started to emerge is the “global economic slowdown.” In 2017 the phrase “global synchronized growth” became very popular and the sentiment behind it (that major economies were all growing in unison) became a rallying cry for bulls that helped provide tremendous upward price movement. Fast forward to the end of 2018 and you hear more and more about a global economic slowdown that is occurring and the fear that while a recession is not at hand, that the days of synchronized global growth are well behind us and more moderate (even stagnate) growth in many of the world economies is at hand.
While days like Friday where the major financial media outlets are all screaming investors are worried about a “global economic slowdown” certainly catch eyes and create clicks are advice in the coming week (and all weeks for that matter) is simple. Stick to your trading plan, pay attention to the technical analysis signals generated on charts and become a disciplined chartist. While achieving this level of expertise takes a bit of education and work on your end, it is certainly the preferred plan compared to attempting to become an arm-chair global economist or basing your decisions based on financial media headlines.
Chart of the Day
S&P 500 (SPY)
When the dust settles in a few weeks and 2018 market price action ends, it sure appears that 2018 will be remembered as a year of sideways price movement. For sideways price movement to occur, a support area and resistance area must exist. The support area on the major markets could be a major battle zone to end the year and something traders around the world have their eye on as we head into the week before Christmas.
Video of the Day
How to Prepare for Events Fed Edition
Coach Tim’s thoughts on the Fed meeting 4 months ago still applies now.
Today’s Lineup
Traders Lounge 11am EST
Join the coaches in this live lounge, ask questions, discuss ideas or just sit back and listen to veteran traders discuss market conditions.
Halftime Report 12:30pm EST
The Halftime Report starts at 12:30 EST and covers what news is driving the market, chart analysis from the movers and shakers of the day and fun in a way that only Matt and Tim can deliver.
Market Recap 4:30pm EST
The Market Recap is designed to give you a quick overview of the day that was. While brief, this report is designed to cover all of the major events that drove the markets that day and help you plan for the trading day ahead.
