No trade today, Positive news brings market up
5 min Emini Nasdaq 100
Hi,
How's it going? I did not trade today. You might have discovered some trading opportunites especially at the turn of the stochastics ( see green cricles in figure)... But my caveat is that moving averages are flat and the Short-term MACD is uncomfortably close to the zero-line. I did not want to risk it. Risk / reward did not seem good enough for me to consider going long... I stayed on the sidelines... I want to encourage traders, especially novice traders to have the courage to stay on the sidelines when you must. There is no rule that states that you must trade everyday.
Fundamentals:
U.S. retail sales rose solidly in September while inflation pressures were largely muted, according to data on Friday that eased recession fears and suggested further interest rates cuts may not be needed. The show of consumer spending power in the face of a slumping housing market and tighter credit conditions gave a lift to stocks prices and to the value of the dollar. Bond prices fell as traders saw the data reducing chances that the Federal Reserve, which lowered borrowing costs in September, would do so again at a meeting at end of the month.