I like the word flux. No, not as it relates to soldering. I like the word as it relates to the market, as the market is “in flux.” And so it is, as the market tries to figure out where to go. On the one hand, the global economy is still putting up weak fundamental data, but on the other, annoying positive data fills in the cracks. It is hard to downplay the positive housing data in the US and it particularly difficult to ignore the mounting evidence the US consumer is feeling better despite the negative tenor of the US election, despite the negative bias of the media, and despite the reality that the US economy is sluggish at best. The US consumer is showing his/her improving confidence with spending this fall and US retailers are preparing for a strong winter as well.

  • U.S. home prices rose for a sixth straight month in July in the latest sign of a sustainable housing market recovery, while a jump in consumer confidence this month offered a harbinger that Americans are ready to loosen their spending.
  • The Conference Board Consumer Confidence Index, which had declined in August, improved in September. The Index now stands at 70.3 (1985=100), up from 61.3 in August. The Expectations Index increased to 83.7 from 71.1. The Present Situation Index rose to 50.2 from 46.5 last month.

The above data presents opportunity, as the market likes companies that make money. Retailers and REITS are two examples of areas to look for market opportunity, but hey, that is not advice; it is just me pointing out the obvious.

  • Ed who? I don’t buy blindly, neither do I take advice blindly.

The gentleman who wrote me the above is correct on both counts. His question implies that he knows nothing about me other than my TraderPlanet bio and his statement suggests because of that no matter what I advise, he will do his own work to prepare for his strategic plan. I like his thinking and I encourage all to follow his thinking.

I am but one voice of many talking about the market. There are many out there smarter and more in tune than I about the market. As well, though, there are many who can send your money down the drain, if you let them. In the end, my goal is to help you help yourself be better at making your money work, so take my advice with a grain of salt, but listen carefully to my words that focus on the time-tested fundamentals of trading or investing in the market …

  1. What about the Las Vegas real estate market?
  2. Will we see Gold go to $2000? And silver to $50?
  3. Very simple question: How can I build a system that really can make money?

In order, I don’t know a thing about the Las Vegas real estate market. I don’t know if gold will go to $2000 or silver to $50. I don’t know about a system that makes money, but I do know that with hard work, solid experience, and a willingness to trust in your abilities, you can make money investing or trading markets. That I know for sure.

Referencing the reader’s question at the top of this piece, I work hard at talking about only that which I understand. So, if you want insight, helpful tips or reminders about the fundamentals of trading, or a well thought-out opinion on market topics, stick with me, as that is what I do.

Trade in the day; Invest in your life …

Trader Ed