Flat In Cash Is Fine On Dicey Friday

2020-03-20 | Simpler Trading Team

With wild, uncertain activity in the markets on a Friday, sitting back and watching the action was the play of the day.

A choppy open teased traders through midday until the market ripped down to close out a dismal week.

The end of week session was like a convergence of all things unstable in the markets.

Fridays can be tricky even in a “steady” trending market. Add in monthly expiration Friday (including being the last expiration day of the quarter for index futures, index options, and stock options) and trading got hairy very quickly.

Take into consideration everything else going on in the world and much of the trading action and prices of tickers was too dicey for many Simpler Trading moderators.

The potential for harsher movement to the downside was a red flag throughout the afternoon.

After a few cautious dips into the choppy market, Simpler’s traders elected for the most part to watch the action from safe positions, maintain cash, and wait it out through the weekend.

We Saw: a freaky expiration Friday to close the day, week, month, and quarter — 

  • Reports of massive job loss numbers coming next week
  • Market instability never seen before
  • Niche small businesses shutting doors forever

We’re Watching: … for a pattern that indicates a bottom —

  • Don’t know when a bottom will happen
  • Continued downside pressure from margin calls
  • A long, hard recovery ahead

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