Market Report Mar 04 2021

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Market Report for Mar 04 2021

Patience is a  stock traders super power.

Market Trend:

Market YTD:
Russell 2000 +11.8% YTD
Dow Jones Industrial Average +2.2% YTD
S&P 500 +1.7% YTD
Nasdaq Composite +0.9% YTD

Market Volume:
NYSE Vol: 1.2 bln (A)
Nasdaq Vol: 5.4 bln (A)

New Swing Positions:

The Dow Jones Industrial Average is dealing above its 50MA while the S&P 500 found itself back at its 50MA. So nothing much to report there. However, Nasdaq Composite is very much in a range and just below the 13,000 RN but more importantly undercut the prior low with a BrRPI. So the expectation is further weakness near term. We also know consolidations will often last between 20-60 days and we are now 12 days so a daily BuF is not what we are aiming for anymore.

Looking at the weekly, we have a BuF formation but if we go back to the prior MaR webinars, we noted the indecision look on the monthly. Could this now be coming into its own?

Using the &P 500 as our benchmark, the trend is still up but that does not mean this index cannot go the same route as the Nasdaq Composite is suggesting. This weekend, after NFP, we may well need to make adjustments to our portfolio to accommodate price action near term.

Pullback Percent:
Dow Jones Industrial Average: -2.16%
S&P 500: -2.93%
Nasdaq Composite: -7.79%

We can see from the figures above, the area that is getting hit at the moment is growth and tech. Nasdaq is declining at the fastest rate which is not unusual as it will often incline at the fastest rate, as you will recall from the MaR webinar. Either way, we will likely be making adjustments to our book.

Our FX positions are currently limited to AUDUSD and GBPUSD. Adding to these and other currencies will take place after NFP.

Let’s go trade!