MaR Feb 28 2020

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Market Report for Feb 28 2020

New Positions:
None

Trade Zones:
None

Market Trend:
Sideways

Market YTD:
Nasdaq Composite -4.5% YTD
S&P 500 -7.8% YTD
Dow Jones Industrial Average -9.7% YTD
Russell 2000 -10.2% YTD

Market Volume:
NYSE Vol: 1.8B
Nasdaq Vol: 4.5B

Key U.S. News:
Personal Income
Personal Spending
PCE Prices
PCE Prices – Core

Comments:
The stock market sells off 4% in a volatile session on coronavirus concerns.

On the training last Sunday, I mentioned VIX and how this is becoming a concern. Since then it has been surging up so we have been staying out of the market.

S&P 500 is now below its DVI and we have to wait to see what happens from here. As of today, we have a bearish bias but prices will often overshoot the market and provide fake breakouts. This can also be the start of a bear market but the initial break of a DVI brings with it low probability so a pullback, retest/BrF is required for a continuation down. Watch the weekly MA lines next should price continue down.

Looking at Sebastian’s SURE report, we can definitely see more activity in FX which has been on the incline for a few months but with a lack of consistency. We are long Gold as of yesterday and looking at FX.

As mentioned before, we are looking at 20-60 bars generally when price makes a big move in the opposite direction. So far we are at 6 bars which are in heavy volume selling.

So today is another stand aside day. We are waiting for volatility to subside and price to find a level of support OR shows signs of further weakness.

MAR Feb 28 2020

Lets go trade!