Today is the day,
We lose a car, or we gain a New house!
I remain short on Stocks with the Risk off approach to Election, FOMC meet and upcoming end of cycle.
I expect a Spike on GOLD (up) to be or not capitalized on.
And with the Trump vitctory I intend to ride Metal down until Mid December where I will buy them again to High printed this year.
FED just cut 50bps! 🔥
Normally, that signals an incoming or existing recession...
Will 2024 follow the same playbook? 🤔
Let’s break down the stats, key levels, dark pool trades, and options flow in today’s video! 🎥👇
#FOMC#RateCut#RecessionWatch#DarkPools#OptionsFlow#Trading
🏆 #TopCharts of the week
1️⃣ NASDAQ 100 Forward EPS (YoY) vs. Drawdown
Slowing earnings growth typically causes short-term market pullbacks. Yet, the Nasdaq 100 often recovers swiftly, reaching new highs as in 2006, 2011, 2015, and 2019. However, severe recessions (2008) or significant rate hikes (2022) can lead to deeper corrections, exceeding 30%.
👉View live chart : pse.is/6a4uwc
2️⃣World - P/E Ratio Ranking
Recent market pullbacks have heightened fears of overvaluation, emphasizing the importance of the P/E ratio. The leading stock markets by P/E ratio are: 🇮🇳 (27.7), 🇺🇸 (26.0), 🇿🇦(25.2), 🇰🇷 (19.2), and 🇦🇺(19.0).
👉View live chart : pse.is/6a4uye
3️⃣Big Techs - Magnificent 7 CapEx
Capital expenditure (CapEx) refers to funds used by a business to acquire, upgrade, or maintain long-term assets like property, buildings, equipment, or technology. These investments aim to enhance long-term efficiency and profitability. This chart shows M7 CapEx hitting a record high in Q1, indicating optimism about future demand. As Q2 earnings season begins, keep an eye on company CapEx figures.
👉View live chart : pse.is/6a4v8f
4️⃣World - Buffet Indicators
The Buffett Indicator, calculated as stock market capitalization as a percentage of GDP, offers insights into market valuation relative to the economy. In a December 2001 Forbes interview, Warren Buffett described the ratio as a valuable tool for assessing the US stock market's overall valuation. A range of 75-90% is reasonable, while over 120% suggests overvaluation.
👉View live chart : pse.is/6a4v9r
5️⃣US - Citi Economic Surprise Index
The Citigroup Economic Surprise Index sums the differences between actual economic data and their consensus forecasts. If the index is above zero, the economy is performing better than expected, and vice versa. Since Q2, the US index has been falling, leading the market to predict a Fed rate cut in Q3.
👉View live chart : pse.is/6a4vaz#MM
Every single strategy in Trading no matter how good it is will go through a period of downside, where it’s not getting good results.
But if you don’t have the mental strength to se through those bad trades then it doesn’t really matter how good the edge is because at the first sign of a flaw, or failure you’re gonna bail out.
Strong mind over a strong strategy.
It doesn’t matter how fast your car is if you can’t drive it..
I have traded the same strategy for 10 years, I have adapted to the Market and refined it but the core HAS NEVER changed!
What has is my mental resilience to endure bad times.
How many of you have jumped ship thru bad times? On what strategy are you on? number 3,4, 5th one?
This is the reason I don’t know any other strategy, I have developed mine alone (out of ego) and stick to it (out of pride)
But made it work (out of hard work and resilience).
If you not suffered thru bad times in the Market are you even a Trader!
The most overrated trading tips Vs the most underrated tips.
Overrated:
• Focus on the Risk/Reward
(Forcing a desired RR doesn’t make the trade better statistically, BS to think you can lose more than you win and make money. if it hasnt got an edge and doesn’t make sense, doesnt matter how many you take, they will all statistically be bad. Your price action determine the RR, then you either accept it and take the trade or ignore it and move on to the next)
• Compound your gains (this leads inevitably to a sense of inachievment, small rewards goes a long way in the management of greed, fear. Compounding will leas you to push past your target or fast track it. Regular profit taking will keep you in a check and focus on acquiring more consistency and focus on capital preservation)
• Use Small Stop Loss ( This is widespread since the Broker starts up days, to keep you in a false sense of security. The more room you give the safer you actually are and the better the odds of seeing that move your way. It s all about the sweet spot about being right and leave enough room or wrong within a realistic price action. RR pushes you to use the wrong room because of the attraction to reward you have with a false sens of first security (tigh SL) and false statistical edge, if only pays it makes it work.
• Trade Demo First (Complete lck of emotional tester, you cannot fins your emotional response within a lack of risk. This is a recipe for faillure every single time. You must feel pain to see gains)
Underrated:
• Build discipline in your Life first (Gym, Diet, routine) This will transfer positively into Trading. As not having will impact your trading negatively.
It’s simple and goes a long way to build trading discipline.
• Eliminate the Bad trades instead of looking for way to get new on in.
(Less education, more reflexion on what is wrong with what you do. You don’t fix a problem by bringing more parameters into the equation. You removed them one by one.
• JOURNALING. Gather data. Losing is paying the fee to find out what works and what doesnt for you. Losing = cost
But if you do nothing with the losses, the cost will be infinite. Therefore collect data and use them. Focus on how to understand and collect data.
Journaling brings accountability, and that is needed to progress.
Don’t be fooled, Trading is NOT for everyone, but EVERYONE can do all the above and find out if really it is working for them.
Some people achieve their “overnight” success in 12 months other in 18. Then 3 years, even maybe 6 years… When your day comes it comes. Cant compare you to the next person. But what I can tell you is that you will NEVER achieve success by giving up, Persistence is the Key 🔑