Playing It Safe Through The Weekend

2020-03-27 | Simpler Trading Team

The Dow tumbled more than 1,000 points early Friday before cutting losses into the afternoon only to close down 915 points after a rapid selloff in the last half hour.

It was a day to beware the bear market “head fake” while awaiting a $2 trillion U.S. government stimulus bill.

The head fake took out opportunistic traders while the stimulus bill bolstered hope of a bullish return.

The session tumble today followed three days of a strong market spike that broke decades-old record surges.

Simpler Trading moderators waded through the continuously changing market signals on Friday with cautious trades and a tendency to stay weighted in cash while waiting for the weekend.

As it has been for weeks, safe plays to maintain accounts are to avoid overnight trades or holding anything through the weekend.

Focus is on being rested and relaxed going into Monday.

Anything the federal government does and how the market reacts are two big uncertainties.

Goal is to let the market play out and follow its lead.

If next week is anything like this one, it’ll be another wild ride in the market.

We Saw: the market “head fake” traders — 

  • Market popped up after historic stimulus bill, then retracted
  • Varying degrees of coronavirus affect based on sector
  • Another day in history right before our eyes

We’re Watching: … for a tumble to take out the lows —

  • Maintaining heavy cash positions
  • How shelter-in-place orders affect economy
  • Possibilities in DOCU, MRNA, NFLX, GOOGL, ZM

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