Over the past few weeks, we’ve seen the market’s trading range become increasingly narrow. But there is some context to this, because we’ve seen tremendous intraday volatility, or wide trading ranges on the daily timeframe.
This is why I love to say, “When in doubt, zoom out.”
Because even though there’s a healthy level of fear in the market, its internals continue to shape up nicely.
Here’s what I mean…
The Real Story on Rates
One of my favorite aspects of being a trader focused on money flows and price action above all else is that it gives me something tangible to compare against the gossip of the day.
This is especially the case when the phrase, “A bull market climbs a wall of worry,” is considered.
Every time there’s a bout of market volatility, we start to hear about an imminent financial meltdown, or even more – a housing collapse.
But let me ask you this question: Would real estate and financials be plastered across my Sector Performance Scoreboard if this was the case?
Today during my live session at TheoTrade, I’ll be discussing the pros and cons about following consensus but also the dangers of being a Contrarian.
I talk about this a lot in my sessions, but in this business, there is a big difference between an opinion and a position.
Just remember which one is actually going to make a difference on your portfolio’s bottom line.
-Gianni
