Bonus Season!

While contraction is expected for 2017 Bonuses paid to Wall Street professionals; due to investors letting their money ‘ride’ as building economic strength carried markets higher. The opposite should be true for Bonuses paid by private and publicly held entities. There have already been significant 1-time Special Bonuses announced and attributed to the Tax Cut and Jobs Act.

Technicals indicate ESH is positioned to retrace back to September highs (2730 area). This works out to a .382 retracement and 5% correction. Note the market would still up on the Year, and the 50 Day EMA sitting at 2728 would be tested.  As Bonuses are paid out into early March, strong Q4 earnings reported, and positive economic reporting continues; it will be interesting if market Fundamentals can override weakening Technicals.

My Best Case Scenario would be Technicals prevail in the short-term. This would let a little air out of the market and provide the underpinning necessary to sustain significant gains as 2018 progresses.

Sophisticated traders / investors understand and respect the relationship between Fundamental and Technical market components. This keeps anxiety down and generates the high awareness needed to outperform by keeping decisions ahead of price movement.

Making the time to strengthen Fundamental and Technical understanding is essential if you desire to become aware of the subtleties best directing market entry and exit. If you rely on 3rd parties to provide this information you are likely to find yourself chasing the market instead of staying ahead of it.

Do the work. It is interesting and rewarding. As your market analysis improves so will your non-market related decision-making. You will become aware of smaller details providing the insights to gain significant advantage. The professional and personal fulfillment from these discoveries will generate the energy needed to sustain greater effort.  Doing the work to make better decisions, faster pays a double dividend.

Please note my  next Live On-Line Trading School begins this Monday, February 5th; full details are here