Tackle Today: The Reaction to the News
January 30, 2023
«This is all that ultimately matters»
Traders,
We have a big week on tap. Earnings season kicks into high gear with a parade of high-profile names stepping up to the plate. We also have a much-anticipated Fed meeting and January jobs report. If you think you must listen to every earnings call and the Fed press conference, I have good news – you don’t.
The reaction to the news matters far more than the news itself. The market is a forward-looking discounting mechanism, and it’s impossible to know what is priced in until after the fact. Following the price trend simplifies matters considerably. Indeed, it’s the great advantage of using technical analysis in the first place. It tunes out the noise and focuses on what is happening instead of why. It simplifies the decision-making process.
Bulls have wrested control of the daily trend across pretty much every risk asset. Despite a few shots across the bow, bears have remained powerless in stopping the uptrend. Might the Fed or big misses from this week’s tech giants finally arrest the ascent?
Maybe.
But why not wait for the reaction to make sure?
Video of the Day: How to Swing Trade Covered Calls
Check out the recent “How to Swing Trade Long Calls” webinar from Tyler Craig in our Tackle Trading “Trading for Beginners” series.
Chart of the Day: Russell 2000 ETF (IWM)
This morning’s down gap was bought double-fisted. File this under things that are not bearish.
Today’s line up
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