Hi everyone hope you’re doing well !
Ahead of today’s market open, the Labor Department said the overall CPI rose 0.4% on the month, above 0.3% forecasts. The 12-month CPI inflation rate held at 3.7%. Economists had expected the inflation rate to dip to 3.6%.
The core CPI, which strips out volatile food and energy prices, rose 0.3% vs. August levels, matching forecasts. However, the annual core inflation rate eased to 4.1% from 4.3% in August, undercutting estimates of 4.2%.
The Nasdaq opened on a positive note and managed to stay in the green for the morning. However the market turned around 1:00 PM on a 30 years treasury auction weak demand.
On this turn around I deciced to sell my stocks and take the profits. One of the reason I decided to sell is the poor breath in the market right now the Nasdaq closed with only 30 Higher highs and 175 lower lows. The Advancers vs the decliners on the Nasdaq based on the 10 days sma was also declining.
As a trader it si really important to work on recognizing the environment we are dealing with. In good environment when the market is in a confirmend uptrend and our setups strart to work it gives us an edge over the market. It is really important to understand as if our buys are made in the wrong environment it could end up with multiple losses.
I will keep working on looking at the general market and the strongest stocks behavior in the next days in order to see if it is only a short term consolidation phase or else and keep updating the best trader journal.
Stay safe ! Thanks
Please note that this is my trading journal that I use to improve as a trader and trying to become the best trader I can become. I share this journal hoping it can help people. I’m not a financial advisor and all the content of this site is not financial advice.