MaR Mar 16 2020

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Market Report for Mar 16 2020

New Positions:
No new stocks
AUDUSD Entry @0.6306 Exit @0.6195
USDCAD Entry @1.3792 Exit @1.3900

Trade Zones:

FX SURE Mar 16 2020

Market Trend:

Market YTD:
Nasdaq Composite -12.2% YTD
S&P 500 -16.1% YTD
Dow Jones Industrial Average -18.8% YTD
Russell 2000 -27.5% YTD

Market Volume:
NYSE Vol: 2.01B
Nasdaq Vol: 4.61B

Key U.S. News:


Having spoken to a friend of mine who is a long term investor on Friday, the recent move down has removed 1.6M profit from his portfolio. The fact is most funds will be suffering at this correction but many will also be preparing for the next market phase, whatever that might be.

Where there is fear, there is often opportunity. As soon as bullishness comes back, we will revert from CPM and switch into those stocks with high growth potential to take advantage of any recovery. If we fail to see a turnaround and markets tumble further, we will look to enter shorts where it is suitable. In either case, a good trend should not be short-lived so we should evaluate and can wait for our set ups. Poor trends do not offer opportunities and are generally difficult to enter, speeding driver aside.

On Friday stocks recouped some losses from the terrible Thursday while global central banks step up liquidity efforts and a fiscal relief package reportedly close to being reached but we are not out of the woods just yet.

While after-hours the markets reacted positively, we may yet see another wave of selling. If that is the case, a move down to 2346 on S&P 500 would not be out of the question. However, it did manage to end the week above the WVI, after having breached it, which is a good sign to calm the market, although it is still dealing below the DVI.

This week will be one of caution in case what we are witnessing is the calm before the storm. Again, don’t rush to jump into the market but watch for signs of reversal or a continuation of this move down.

At present and as we have been discussing on the SURE report in recent months, FX is waking up. This week produced some good profits in currencies so watch for more moves in this arena in the coming days and weeks. Not sure if this is a start of a trend trading environment but it is certainly a swing trading one. You should look to enter your trades on daily or a 1-hour timeframe.

Level 3 traders, a video will be posted later today so please have a watch of that this weekend.

Lets go trade!