How ‘News Flow Theory’ Affects the Market in a Short Trading Week

And Why I'm Not Worried About It
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With the markets closed for Good Friday, we have a short trading week.

Volatility can be a little higher during short weeks because a lot of investors and hedge funds don't like to be in their trades over a long weekend, and they're often looking to get out of their positions.

It all has to do with something called "news flow theory." If news comes out Thursday night or Friday morning, and it affects a position negatively, a trader can't get out until Monday morning, when everyone else is trying to do the same thing…

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The only big news we have affecting the markets is this week's employment data, and that's not as great a catalyst as, say, the recent financial crisis...

Does that mean nothing will happen? Of course not! We can't predict the future.

That's why my favorite strategy during these short, volatile weeks is to sell some premium.

I still have my positions in Fortinet and Nvidia, and I'm getting ready to release another one...

Want to learn more about the strategy and see what I'm currently trading?

Just Go Here

Trade well,

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Jack Carter

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