Hello traders
I hope you had a good week!
The theme of last week’s post was the rise of volatility stemming from fears over China and the Fed. With our Market Risk Checklist in a neutral position, the market was exposed to a combination of an exogenous shock and a more hawkish stance confirmed by US policy makers. Having filled the gap left a week last Monday, the S&P 500 resumed its slide this week and looks at risk of potentially seeing a new low.
Given that today is the first business day of the new month, traders will be focused on the economic calendar with the ISM Manufacturing PMI potentially providing cues as to whether the increasingly bearish consensus is correct in its positioning. There is also some consumer and inflation related data pending which could also stir speculation over the Fed’s likely course of action on stimulus and interest rates. It may well be another case of “bad data is good” for stocks, as bond yields would presumably correct lower should it look as though the recovery is dwindling – provided the Fed reacts to that new information accordingly!
In order to get a proper handle on the market outlook this month we should of course refer to our Checklist process for more objective guidance. We have just updated our Monthly Checklist Report for October which Trading Club members have immediate access to, and includes a new set of scores for many of our Checklists.
Here’s a quick preview of one of the Checklists that has caught my eye this month. Whilst I cannot reveal the scores to you here just yet, I look forward to doing so in the next couple of weeks.
If you would like to learn more about our methods, and join me for more analysis in real-time, head to milliondollartraders.com and check out MDT course and Trading Club pages where you can preview everything that we cover.
In the meantime, why not head over to our YouTube Channel for our latest FREE videos! As there’s no charge for this content, it would be great if you could support the channel by leaving a comment and subscribing.
Have a great weekend,
James
Disclaimer: For educational purposes only. Even though we do our best to provide reliable data, you should not trade based on this information.
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