Well, we’ve gotten our correction. Talk of rising rates and the US Dollar Index reaching the 100 level has grabbed everyone’s attention. Breadth still looks fairly healthy, but more cautionary evidence is piling up. As we move into next week, the Fed will begin to take over the headlines. Try not to drown in the noise, an important week is upon is.
With that, let’s talk markets and prepare for the week ahead in this week’s Top Trading Links.
Market Insights
- @andrewnyquist discusses the banks recent relative strength. Banks are set to be a prime beneficiary of a potential rising rate environment.
- The crew over at @MercenaryTrader shared why it makes sense for Yellen to continue on the path towards raising rates.
- @ivanhoff lays out the main argument for why the FED shouldn’t raise rates.
- @FabianCapital and myself collaborate on ways investors can interpret the upcoming interest rate and inflationary environment. Regardless of our opinions on the Fed, the Treasury Inflation Protected Securities ETF (TIP) should give us a couple of huge hints about what to expect.
- @BBTompkins covers some divergences he looks for in anticipating market inflection points. Note we’re seeing 3 of the 4 things he’s looking for.
- @JLyonsFundMgmt writes that 401(k) stock allocations have reached 2007 levels. He lays out multiple discussion points around the subject, including one that may SHOCK you!
- @TheReformedBroker highlights how Tech insiders are selling aggressively while their companies buy shares aggressively.
The Mental Edge Â
- Ray Dalio explains the power of not knowing. Once you grasp the concept that you don’t know the future, you can start to make meaningful gains in your trading and investing process.
- Also read @AdamHGrimes on why market predictions are uncertain.
- @steenbab explains why traders need to be mentally prepared for every possible outcome of a trade. He delves into his best practices in this trading series. Visualizing trading scenarios multiple times before each day is one of the greatest weapons to prepare ourselves for trading combat.
- @TheReformedBroker shares why investors should embrace the obvious market risks. It’s important to understand news flow affecting the broad market to get a step ahead of the game when pullbacks come.
Other Awesomeness
- @sirmarket shared an awesome TED Talk that dives into our bad judgements. It’s a very relatable listen.
- @DarvisTrader lays out the Darvis Trading System.
- @wired reminds us security will be a huge opportunity in the internet of things revolution.
- Tim Cook joined Jim Cramer’s 10th anniversary show and discussed the BIG picture of wearable technology. One day we’re going to look back and laugh at how primitive these early generation Fitbits are.
You can access past “Top Trading Links” articles here.
Thanks for reading!
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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.
