There’s a market lesson hidden in the world’s biggest news story today.
It’s something we talk about all the time…
In fact, just a few weeks ago, I told you that your first job as a trader is to systematize your approach to take your emotions out of the equation.
Being a rules-based trader means you know what to trade, when to trade it, how much you’re risking with every trade, how you’re managing your risk while the trade is on, when to take profits…
Trading with a system means never having to wonder what to do in a given scenario because the system answers all your what-if questions ahead of time: What if the stock drops? What if the stock skyrockets? What if the stock goes nowhere?
And especially… What if the unthinkable happens?
The answer is always the same: stick to your discipline.
Because even though we don’t like to talk about it, anything we might call “unthinkable” – 9/11, the Kennedy assassination, and yes, the attempted assassination of former President Donald Trump on Saturday – has a very distinct market pattern.
And it’s one that offers a lesson in trading on your emotional impulses.
So, in today’s video, we’re going to go through our usual paces and look at:
Stocks: The SPDR S&P 500 ETF (SPY) is still marching toward my high-end target of 580…
Bonds: The iShares 20+ Year Treasury BondETF (TLT) is still on track to move down to 87.50. If it stays above that, I don’t think it will impact stocks much at all. But if it dips lower…
Commodities: SPDR Gold Shares (GLD) continues to surprise to the upside, powering toward my target of 250. The United States Oil Fund LP (USO) technically ends its seasonal bull pattern today – but it looks like it might have a bit more upside left in the tank.
Currencies: The Invesco DB US Dollar Index Bullish Fund (UUP) continues to hold above support at 28.50 – and where it goes next could be critical for stocks.
Then, I’ll show you markets reacted to Saturday’s news – and we’ll do something we don’t normally do on Mondays…
We’re going to take a look at a single stock that tells the entire story – and explains why trading on emotion is a recipe for disaster, no matter what your politics are.
Click below to get started now!
Good trading,
Tom Gentile
America’s Pattern Trader