Sell on Friday, and go away!
It sure seems like traders on Friday do not want to go into the weekend long after war broke out in Israel/Palestine. I reckon it’s been 3 Fridays in a row that we have sold off. Who knows what could happen the next 48 hours the market is closed? Best to enjoy the weekend not fretting about your positions.
Today Core PCE price index the Fed’s preferred measure of underlying inflation was on my mind as I looked at the charts pre-market. On seeing PCE accelerated to a 4 month high in September and consumer spending picked up, keeping the door open to another interest-rate hike in the months ahead, I had a feeling maybe we could be in for another down day.
When my edge appeared early I took it but to my dismay we did not selloff immediately to the downside in the NQ and I was stopped out. I waited to see if there would be another opportunity to enter the market and when ES retraced after making a high for the day and retraced off the cusp, ONL, I took that short. It paid off into a 2R in the NQ.
It is always important to wait patiently for your edge/setup to appear if this is your style of trading. Some days I put on a bracket order and walk away. Today because I took the first loss, I wanted to see if I could get an opportunity to enter the market again. And it paid off, albeit in a small fashion but a win is a win and it’s nice going into the weekend green.
We have an abundance of economic data next week. It could possibly be the biggest week of data for 2023.