Trump, Tariffs, Amazon, the 200 Day Moving Average and Your Process

The last few days have been filled with noise. Trump took to Twitter and attacked Amazon $AMZN for not paying taxes, for allegedly having a below-market deal with the United States Postal Service, and for putting “mom & pop” shops out of business – 90 million American Prime members (and voters) be damned. As if that wasn’t enough to send the financial media into full-blown supposition mode, the administration announced proposed trade tariffs against China.

The DOW sold off 450 points on Monday only to regain 400 points on Tuesday. The volatility had everyone talking about the 200 day moving average, the fact that we had breached it for the first time in over 400 days, and the fact that healthy bull markets do not include 800 point swings in two days.

Leading into today, the sentiment was deafeningly bearish.

Had you been listening to (and worrying about) all of this there is a real chance that it took you off of your process. It’s hard not to become fearful when everyone is telling you to be fearful but that is exactly what you should do.

There will always be noise but I have learned that sticking to your process despite the noise is how you win. Amidst the bearish Tuesday night chatter I stuck to my process, ran my scans, and posted a few ideas on StockTwits. Two of those ideas triggered long today ($ANF $TLRD). Here is how they are doing (the gray line is yesterday’s close):

Screenshot (57)

Screenshot (56)

The day is certainly not over and maybe both of these stocks pull back but I have stops in place as part of my risk management strategy…. I am following my process. I hope you will, too.

Happy Trading!

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