VIDEO REMINDER In Today’s Masters in Trading: Live Yesterday, I pointed out the divergence brewing between the Russell 2000 and the QQQs. That massive disconnect we’re seeing in the markets has everything to do with today’s non-farm payrolls (NFP) report. Traders have been lightening their loads before today’s announcement, making the Nasdaq obnoxiously expensive in comparison to the Russell – at least in the short term. Now, with a better-than-expected employment report in the books, we should expect to see market volatility trending lower in the coming weeks. And at this point, another Fed rate cut is nearly guaranteed – but I don’t expect the markets to make a full pivot away from fear and uncertainty any time soon. Trading on any divergences we see is our best bet going into the post-NFP stock market. As traders, our role in a situation like this is to make the markets more efficient… And that means betting with fixed risk from here as we anticipate more volatility in stocks. In today’s Masters in Trading Live at 11 a.m. ET, I’ll give you my high-level view of where the markets stand this week, and we’ll look ahead to the other major stock market catalysts on the horizon. If you want to be part of the action and share your comments and questions in real time, be sure to join me live on YouTube . It’s a great way to connect directly with our trading community and make sure you’re getting the insights you need to help build a deeper understanding of the markets. Remember, the creative trader wins, |
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