Patience Pays

StatsEdgeTrading

Today’s post dives into why I'm holding off on making any major moves despite the market hitting new all-time highs. Think of this period, with major events like the election and the upcoming FOMC meeting, as similar to an earnings season for the entire market. Just like with individual stocks, I’m taking a cautious approach to see how the close develops before fully deploying risk.

Key Points:

• Event Caution: Major events, like elections or the FOMC, can act like earnings for the broader market. Just as you’d avoid buying a stock right before its earnings announcement, I’m waiting for the dust to settle before fully committing.

• Watching the Close: A morning rally can fade by the day’s end, which is why I’ll decide at the close. Missing a bit of upside is a reasonable trade-off for reducing the risk of a midday reversal.

• Algo-Driven Trades: My algorithms are consistently spotting solid trades, but I’m prioritizing cash positions for now until I’m confident in the market’s direction post-FOMC.

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