Manic Monday Sees Markets Surge
2020-03-02 | Simpler Trading Team
The markets were full of twists and turns as the news-fueled roller coaster of trading continued after a 3,500 point Dow drop last week.
Trading education moderators at Simpler Trading casually referred to the current environment as an equal opportunity dream killer. Playing the day short or long could wipe out your position as the day opened way up, cut the gains in half, and then surged into the close.
The Dow powered its way to close up 1,293.96 on the day at 26,703.32 while the Nasdaq climbed to 8,952.16 and the S&P 500 rallied to 3,090.23 as they closed up 384.80 and 136.01, respectively.
Considerations at Simpler were the rally may be short-lived in this volatile environment. Traders were encouraged to be nimble in their trading over the next few days.
Moderators at Simpler, who trade their personal accounts, kept trades to a few positions while watching for the markets to change quickly at any time.
Markets revealed an oversold bounce compared to last week, similar to how markets reacted in 2008 during the financial crisis.
Moderators looked to trade market volatility intraday, while being light on positions overnight. Anything can happen overnight, so moderators are focused on “what’s happening right now” and maintaining their cash positions.
“Get in, get out. Keep your hand on your wallet,” is a theme for the day.
Ups and downs this week may be a reality check for many traders.
We Saw: massive surge into the close —
- Sharp reversal after historic drop last week
- Run on COST as consumers buy up supplies
- Technology and energy tickers make moves up
We’re Watching: … any oversold bounce —
- Best positions after staying light overnight
- How did QQQ and NQ move into the close?
- Has SPCE engine sputtered for fall from the heavens?