Coach Mark here.

The markets are a little confused right now. In modern markets there is the saying “bad news is good news.” This refers to bad economic news equating to reasons for the Fed to loosen economic policy which markets tend to celebrate. Hence when an economic report comes out that shows a weakening economy, markets will sometimes rally on that “bad news is good news” data point.

However, there are times that the market will sell off on bad economic news if they are worried about a possible recession. That was kind of the vibe in the market the last week as “bad news” created intraday volatility and areas sensitive to economic downturns (i.e. cyclicals, small-caps) were laggards.

Let’s not overthink this. I will talk about this in the Tackle Trading Newsletter this weekend but let us sum it up. The market is a tad confused right now on the whole “is bad news bad news” front. Has the economic data surprised to the downside more frequently than normal? Yes. Have we also had positive economic data points as well? Yes.

We certainly have the economic data points over the next couple trading session (unemployment tomorrow, CPI and PPI along with the Fed meeting next Wednesday and Thursday) to create a more tradable theme.

Until then I am looking for opportunities to make sensible decisions in my trading. I can do that while the market works out what type of news is bad or good.

Have a fantastic Thursday!

Chart of the Day: Nvidia (NVDA)

All hail the King. If it goes much further, Nvidia will be the largest company in the world by market cap. Reverse split incoming next week.

Today’s line up

Traders Lounge 11 AM EST

Join the coaches in this live lounge, ask questions, discuss ideas or just sit back and listen to veteran traders discuss market conditions.

Cashflow Club 8:30 PM EST

Held every Thursday before Friday’s option contract expirations, this show helps you perfect your favorite cashflow strategies.

Halftime Report 12:30 PM 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 the coaches at Tackle Trading can deliver.

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