Investors can breathe a sigh of relief after Federal Reserve Chair Jerome Powell’s recent comments during the Jackson Hole symposium and the resulting market bounce.
Now that traders know the Fed won’t be rash with its tapering policy, and will keep rates low, TheStreet.com’s James “Rev Shark” Deporre says better days are ahead, especially if investors are willing to adopt the right mindset.
This from Rev Shark, writing in Real Money recently:
"My best advice for navigating this market right now is to not look at the indices and ignore all the experts that talk about them. The way you make money in this market right now is to forego the pundit obsession with timing and stay focused on the price action in individual stocks.
"I see many traders missing out on good trades because they keep hearing how the indices are extended, and the action is frothy. What they fail to see are the good technical setups and the strong momentum in places.
"This sort of action won't last forever, but it is our job as traders to take advantage of positive action when we can find it. It is always easy to find an excuse to not like the market and to do nothing. Pessimism is often an excuse to be lazy.
Noting a “very good trading environment,” Deporre has some direct advice for investors — don't be fooled by the "experts" that can't see beyond the indices.