Monday: DOW falls 582 points because stimulus plan is stuck in Senate
Tuesday: Wow…stocks have their best day since 1933!
Wednesday: We might get the WORST economic report EVER tomorrow
Thursday: 3.3 million unemployed and stocks have biggest 3-day rally since 1931?!?
Friday: Stimulus Bill signed, but Dow slides 900 points
I’ll give you a quick rundown of what's been going on.
The Fed stepped in yesterday and announced an emergency interest rate cut before the pre-market trading session opened. When the markets did open, equity index futures immediately traded 5% lower, and were locked limit down until this mornings 8:30 AM CT opening bell.
Once regular trading hours commenced, stocks continued to fall, triggering the 7% circuit breaker and forcing a trading halt. Since then, things have calmed down a bit, but volatility is still at extreme levels.
The violent swings we continue to see can be very unforgiving when you make a mistake, so please stay diligent when attempting to trade this week - we expect this volatility to continue !
Monday: Stocks plummet & exchanges stop trading – worst day since financial crisis!
Tuesday: Trump stimulus talk helps markets – but is it enough?
Wednesday: Stocks hammered – and we’re now officially in a “bear market”
Thursday: DOW has the worst day since the 1987 crash
Friday: Stocks had their biggest rally since 2008 after Trump declares a National Emergency
Well, after losing 10% Thursday, the equity index futures were locked limit up in pre-market trading this morning. This is truly unbelievable. Even though we’re happy to see some optimism in stocks, the extreme volatility to the upside is just as dangerous as the downside, so again we urge caution when trading during these volatile times.
Last night stock index futures reached their respective 5% limit down levels. After this morning's 8:30 AM CT opening bell, trading limits were extended, and markets continued to trade lower, eventually triggering the 7% circuit breaker level where trading was halted for 15 minutes. The next level down is 13%, where trading could possibly be halted for another 15 minutes, and then the 20% level, where trading will permanently halt for the remainder of the session.
Since the inception of the circuit breakers after the 1987 stock market crash, when the Dow Jones Industrial Average fell more than 22% in one day, the 13% breaker level has never been triggered. There is a threat of this happening today. It’s easy to get swept up in the news, so try to remain calm. We’ve been here before.
Stay patient, sit on your hands, observe from the sidelines. Understand how the markets are digesting this information.
Trade with extreme caution:
In the last two weeks we have been sitting on our hands only entering trades that are the highest quality, defined risk, and not holding over the weekend.
I posted a $TSLA setup from the chat room that worked out nicely. Even if you held too long the level is holding. But the goal of any trade should be to have a plan for both entry and exit. Also the Euro set up in the previous video worked out nicely.
The /ES futures are a good gauge for the broad market strength. And it just entered a weekly zone where we can look for a reversal to the upside. We can look for a partial move to the upside into 2800 or so possibly more.
If this breaks down below 2862 there's not much support below.
Quick answer is it held but violated the level slightly. It would be within my wiggle room but and big red days like this no reason to give it too much. It actually went green to finish the day. That was just in the last ten minutes before the close.
The market will likely look to grab any positive news to recover some. But using a wait and see approach. Keep disciplined, know where you are wrong, and follow your plan.
Have a good weekend !
tsla daily daily dz 647 please advise
$TSLA -- sure, there's something there (I broke it down for greater precision) -- while the DZ is apparently still a long way down, TSLA's initial move out of it was so parabolic & the market sell-off is so violent, that it could be there sooner than one would reasonably expect if there's another wave down. If that occurs will look at it again. Often times price might turn ay the tail that's now not included, as opposed to the clear DZ. At that point it would make sense to look at a lower TF inside the tail for a level.