Trade Price Not Opinion
If you’ve followed us for any length of time, you probably figured out we trade price. Our strategies are based on price action, not opinion or innuendo. While we do and must watch the financial media for information valuable to us as investors and traders, we have to be mindful when we hear the words, “maybe, could, might, potentially, in my view and we (I) think” are dangerous to your financial future.
CNBC is especially guilty of this, with Bloomberg mornings equally as bad, as they litter the landscape with a minefield of opinions and political commentary. Opinions and politics do nothing to help a trader navigate treacherous economic conditions. Only price action can do that.
Institutions rule the market, so watching what they do by following price action, is the paramount data point we watch. Statistics and probabilities follow, only after we see what price is saying.
Price is King
WYNN Resorts is a perfect example. Earnings were recently reported.
Earnings per share nearly tripled to $1.40, beating Zacks estimates for $1.36, while net sales jumped 30% to $1.689 billion, above views for $1.536 billion. The pick up in sales was helped by gains from Wynn Palace and Wynn Macau, its two Macau resorts. Jan 22, 2018 Investors Business Daily
Listening to CNBC, an average investor would gather you should sell. Many did exactly that, WYNN stock fell more than 20% in 3 days. Trade price action, not your opinion.
For the past week, WYNN is trading along a support zone where lots of shares have traded hands.
Steve Wynn Resigns
News out this morning, Steve Wynn resigns. Your opinion of how this affects the company does little to assist in determining what you should do next.
What does “price,” say? Opinions aside, pre-market price action says the stock will open higher. Shorts are covering for now. Institutions will make their trades known during the session, so we will watch for block size orders.
The take away from price action and what institutions are doing will be determined today and the days that follow as we open near the gap ay 180.00.
My opinion does very little to help you trade. Only price can do that and this morning, we see why we constantly exclaim that Price is King, leave your opinion at the door.
Happy Trading,
Vinny
https://theclosingprint.com/CV_Blog/price-king-blocks-rule/
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