No doubt, the tension on the tape is real. Stocks are attempting to consolidate near the highs (some indices better than others) with the Fed, Alibaba IPO, and the Scotland independence vote forthcoming. With all this in toe, social media is abuzz  about how it’s all going to go down. Needless to say, this likely isn’t the week to be making huge bets based on emotion. And it’s also not the week to be leaning on social media for brilliant insights… probably best to tune out the noise.
Jon Boorman had a classic tweet today in regards to all this newsy/noisy chatter:
BREAKING: Market noise alert level raised from ‘Elevated’ to ‘Substantial’… #Fed #Alibaba #Scotland
— Jon Boorman, CMT (@JBoorman) September 16, 2014
By no means does this mean that investors should ignore the news. It simply means that active investors should stay focused on their positions and plans, while trying to manage risk without the emotion of all the [coming] news. And for some, this may mean rightsizing positions if they feel themselves getting emotional.
Tune out the noise is a phrase that I live by as a trader… I liked it so much, that See It Market turned it into a t-shirt. Check out Ryan Detrick’s tweet yesterday:
Wore my @seeitmarket shirt today. Very similar to sleeping at a Holiday Inn Express. I feel I can do anything now. pic.twitter.com/DQAjBdyTnR — Ryan Detrick, CMT (@RyanDetrick) September 16, 2014
It’s times like this that traders need to stay focused on their system. Steve Burns recently wrote about Tuning Out The Noise – a good read for traders.
Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.
