Still more of the same with the market, although I am getting a vibe that something good is coming. Now, how’s that for a quality analysis?
I always get good questions, but every now and then, one comes in that makes me smile …
I’m generally a part-time technical options trader with 3-5 years of experience. I look at and try to keep up with some of the fundamentals and marketplace catalysts – but there’s only so many hours in a day. How do you filter out the junk? I am bombarded with e-mail newsletters, newspapers, info, and general hype about why someone or some group thinks some market, stock, ETF, etc. is going up, down or sideways, short, intermediate, and/or long-term.
Everybody is going to make me 50, 100, 200 or more percent !!! (I do realize a lot of that is simply marketing hype). However, I’m on information overload and trying to “separate the wheat from the chaff”, all while continuing my day job (which requires more info overload in a completely different discipline). Any suggestions beyond the “you need to pick and choose”?
Thanks in advance for any guidance.
This reader speaks to a subject I have written about many times – there is a lot of meaningless drivel out there in the world of market “information.” His question is a good one, and I will answer it in just a moment, but before I get there, I want to reiterate a point I have made many times – if you rely on points of view other than your own to frame the market, you might well be in trouble.
First off, stop all the incoming information. Unsubscribe to all market newsletters, market updates, and market news alerts. Turn off the spigot. Once you do that, ask yourself this question: What is it I need to know to be successful at my options trading? Now, ask yourself, where can I find that information? Then, seek out those things and those things only. As the information comes in, evaluate it. Keep it if it helps and dump it if it does not.
What I have done is set up bookmark directories. I have one for general news, and in that directory, I have national and international news sources, such as euronews, Al Jazeera, BBC, UPI, and Reuters. I also have one for financial news and some of those bookmarks include Yahoo News, The Economist, Bloomberg News, and the WSJ. I also have a directory called “Economic Resources.” This includes US government data, European government data, and US real estate data. Other than these sources, I subscribe to specific alerts for stocks I am tracking. After years of this approach, I now have a pattern of discovery that allows me to get what I need efficiently every day. I feel I am on top of the information game. I hope this helps …
The US government revised the third quarter GDP up to 2.7%. This is quite a jump and it signals huge economic gains. The more accurate numbers point to a stronger than expected economy and they suggest that once the fiscal cliff is resolved the economic light will turn a brighter green and this will make the market happy, very happy.
So, it is rather surprising to look inside Thursday’s third quarter GDP revision and discover three under-appreciated areas of strength: nominal growth last quarter was the strongest in over 5 years, inflation is running above the Fed’s target, and corporate profits are extremely strong.
Trade in the day; Invest in your life …
