April Fool’s Day May Be Costly

2020-03-31 | Simpler Trading Team

The first quarter of 2020 was brutal — flying to all time highs in February before crashing to historic lows in March.

Last week saw the market set a record for the highest three-day rally in 80+ years before ripping down to dull the optimism.

Today marked another tumble as traders can only guess when the bottom will hit and if markets can begin the long road to recovering stellar gains.

Expectations at Simpler Trading are that there is likely more market mayhem and trader anxiety to come before any extended recovery begins.

Simpler’s traders are looking forward with expectations that there will be a series of surges, like in 2008, followed by the possibility of a sharp downturn. Nothing is for certain, but April Fool’s day could usher in another round of wild volatility.

Take into account the more than $80 billion in business and consumer rent due tomorrow and there will be a tsunami of bills not getting paid. Renters with closed businesses and those with no jobs are hurting.

This “can’t pay you now” environment is setting up to affect multiple industries: mortgage, finance, real estate, credit cards, travel, and so on.

Not a comical day on April 1 as in times past.

So, what’s a trader to do?

Just like we talk about daily, maintain cash as much as needed and seek out the low-risk opportunities as the market presents them.

Plan to maintain trading discipline, control emotions, and stay cautious as to market direction.

And don’t chase the rapidly shifting highs and lows trying to catch the next big move.

As Simpler’s online trading room moderators explain often, chasing IS a plan, and it’s a plan destined to ruin trading accounts.

We Saw: another downer Monday — 

  • Government talking even more stimulus
  • Certain sectors, stocks weathering the trend
  • More uncertainty about market direction

We’re Watching: … shifts over the next few weeks —

  • How many highs are coming before another tumble
  • If market accounts for “no rent money today” on April 1
  • Tickers with possibilities: TSLA, GOOGL, WYNN, MRNA, TLRY

Learn more about navigating news and the markets — check out the Simpler Trading community HERE.