MaR Apr 01 2020

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Market Report for Apr 01 2020

New Positions:
None

Trade Zones:
Standing aside down to correction in stocks and NFP on Friday

Market Trend:
Sideways

Market YTD:
Nasdaq Composite: -14.2%
S&P 500: -20.0%
Dow Jones Industrial Average: -23.2%
Russell 2000: -30.9%

Market Volume:
NYSE Vol: 1.7B
Nasdaq Vol: 4.0B

Key U.S. News:
ISM Manufacturing Indes
EIA Crude Oil Inventories

Comments:
The thought of trading as buying and selling all the time regardless of the market environment is what many think trading is about. Standing aside is one of those little known trading techniques that is also a position like going long or short. It is moving into capital preservation mode (CPM) and not wasting money during a volatile and difficult market. As I have said to Dynamic Traders many times over the years, when there is nothing to do, do nothing!

So while we stand aside on stocks we look to FX for opportunities that are appearing every so often. However, with NFP just a few days away, we might have to stand aside a little more this week.

As mentioned on the webinar a few days ago, the fight is between the wBuE and WVI. So far WVI seems to be winning.

The final day of Q1 saw stocks falter. S&P 500 tagged WVI resistance once again and some weakness then came into play closing the session 1.6% lower. Overnight the Futures are also weak with S&P 500 -51 and Dow -424.

Stand aside and enjoy the prekend.

MAR Apr 01 2020

Lets go trade!