Most investors fall into what’s called “Indicator purgatory,” where they rely heavily on indicators and chart patterns to tell them where to start buying and selling in the market. However, there comes a point in the economic cycle, such as today, when those strategies become too crowded, and most participants collectively look at the same set of indicators all at once.
This is when professional money managers and traders start to zoom out to generate the best ideas, the ones that earn them the big bucks, so to speak. One simple way they achieve this is by considering economic data as a whole, such as the recently released retail sales data, which, despite a contraction, still shows investors a massive opportunity to adjust their portfolios.
