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-Operating under the right set of assumptions is the key to long-term trading success. Knowing why an asset is moving is the key to a proper trading response.
-It is impossible to trade successfully with a preexisting confirmation bias.
-I observed that during yesterday’s mid-morning flash crash, every asset class dropped. That provides a clue as to what we may expect the next time we see a correction.
-I have received many emails and such asking me about commodities. My response is the same here: All asset classes have moved up remarkably well.
-All asset classes are now in sync and are incumbent on continued Fed action. Don’t mistake the upswing in commodity prices as a litmus test here for USD doom. This action is being intentionally injected by recent Fed policy.
-This is important to understand, because if the Fed reverses its course in any way, look out in all asset classes, especially commodities. Don’t hold to a confirmation bias planted by ZeroHedge that says the dollar is toast. That is a one-way ticket to poverty and massive losses.
-Know when to pull the trigger for profit.