Traders should expect more volatility in the upcoming week.  Here is the backdrop and upcoming events to be aware of: Backdrop -Last week’s volatility was driven by; slowdown in manufacturing and services, solid jobs and unemployment numbers -Overall global slowdown Upcoming events -Q3 earnings season is kicking off.  Earnings expectations are “Dim” according to the WSJ, bad news will be punished. -China trade talks resume Thursday/Friday.  Positioning ahead of the meeting is not good.  Breaking headlines will cause dramatic market reactions. -FOMC minutes will be released on Wednesday, 10/9/19, there is growing consensus that the Fed “has to” lower rates, given the weak manufacturing/services data last week and fed watchers will be poring over every word looking for evidence of that thesis. Here is this week’s video update:
How should traders take advantage? -Shorten time-frames.  Take profit earlier than normal and expect volatile moves -Tighten up risk management, take smaller position sizes -Be willing to sit things out if technical setups are not present -Watch sector rotation very carefully and look for individual stocks that are not moving with the indexes   As always, I welcome your thoughts, comments and feedback.   Dean