It is still prudent to cautiously trade this market.
Two years ago we had the COVID crash.
Last year we had a correction on the Nasdaq during this month.
This year we have a different set of challenges for the market to contend with but there will always be some obstacles the market has.
In a bull phase, the market will often climb a wall of worry. It has been climbing this wall for two years. The question is, can it continue climbing?
As of now, the market is finding some strength and showing some resiliency after the tree shaking. On the weekly webinar we came to the conclusion the near-term volatility and possible change in direction was around the corner and the market agreed by reducing the volatility and finding some traction.
As we have rebalanced our portfolio to deal with a bullish and bearish scenario, we can more adequately deal with what comes next.
Based on what has transpired recently, the market seems to be leaning towards the bulls. Price has broken through the levels we discussed and is displaying momentum. Just keep in mind, a sharp move down in one day will undo all the good work very quickly.
So for that reason, do not jump all in assuming the market is bullish. Tread carefully.
Let’s go trade!