MaR Sep 10 2020

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Market Report for Sep 10 2020

Good trends take time

Trade Zones:
Stand aside

Market Trend:
Up

Market YTD:
Nasdaq Composite +24.2% YTD
S&P 500 +5.2% YTD
Dow Jones Industrial Average -2.1% YTD
Russell 2000 -8.5% YTD

Market Volume:
NYSE Vol: 867.2 mln
Nasdaq Vol: 3.5 bln

New Positions:
None

Portfolio % of Return:
Stocks: +335.17
FX & Comms: +6.97

PORT FX Sep 10 2020

PORT Sep 10 2020

Comments:
The market managed to rebound from the proximity to the 50ma and had a nice turnaround. The only problem with the rebound is the time price has spent during this retreat which is very limited. If price continues to progress from here then we have little in the way of growth opportunities and more likely to be momentum plays, which would indicate swing trading would be more appropriate to apply from here. For that to be the case, wait for the breakout and pullback for new opportunities.

I mentioned in the recent weekly webinars that our positions since the March 2020 low have been mainly tech-based so now our additional positions will be a little more diversified to incorporate market mood and any sector rotation.

While we were not involved with trading back in 2000, we were very aware of the tech space craze then crash. After 10 years of prices frantically running up, the dumb money started buying stocks and then the internet bubble burst and a bear market commenced until 2003. I’m not saying this is what will happen now but moves like we are witnessing without breathers and/or good reasons such as a vaccine or other catalysts are reasons to be a little concerned.

Swing trading with tighter stops and taking profit is the safer way to trade this moment unless we have a proper period of rest for the market to gather strength for a new round of proper trends.

Markets Sep 10 2020

Lets go trade!