Mondays, historically, don’t have crazy price action short of weekend news regarding a particular stock or sector. That said, there is action, and taking a look at the calendar of upcoming economic reports can help determine how much action there may be both and Monday and throughout the week.
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Description
Mondays, historically, don’t have crazy price action short of weekend news regarding a particular stock or sector. That said, there is action, and taking a look at the calendar of upcoming economic reports can help determine how much action there may be both and Monday and throughout the week.
Some reports are more important than others in shaping the overall market. For traders, the reports to pay attention to are unemployment (with an eye to where the number may actually be higher or lower than reported), the PMI manufacturing report, the GDP reports, and the minutes of any FOMC meeting. These reports both drive the markets and give an idea to their general health. For example, both manufacturing and housing are showing low levels similar to just prior to the subprime crisis of 2008. Such knowledge is helpful in protecting your portfolio by both knowing when to further hedge and when to look out for the impending bearish market.
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Notes
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