Second Quarter Opens With A Tumble

2020-04-01 | Simpler Trading Team

A crushing first quarter plunge was followed by a second quarter kickoff Wednesday with the markets tumbling again.

The Dow dipped as low as 1,100 points before crawling back slightly to close at 973 points down. All indexes dropped more than 4% over the previous day.

The April Fool’s Day drop started early and never let up.

Key sectors from FANG stocks to so-called “coronavirus stocks” like NFLX to energy to retail were hit by the downward spike. The usual market leaders watched prices fall like everyone else.

The safest trade was made watching from the sidelines as the market got kicked in the teeth, again.

Playing it safe may not be too exciting in this wild market, but maintaining capital is a strong answer to handling volatility.

Traders who stayed out of the carnage, and the more seasoned ones who made some trades, will get another shot.

The fickle beast that is this market will open tomorrow to rumble along once again.

We Saw: a gloomy second quarter outlook — 

  • Rising coronavirus projections causing panic
  • President warning of hard times ahead
  • Stunning job loss expectations

We’re Watching: … a continued decline to the downside —

  • Key sectors failing to lead
  • How energy, oil will survive
  • Stronger setups and fewer trades

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