Fading is the go-to after a limit move, in this case the opening bell triggered the re-open of the market after the limit down. The bias is to the long side, but we wait for a repeatable setup in order to have better footing for the climb higher.
In downtrends, it is not about which lows you can buy, it is about which highs you can short.
Sometimes it’s not what you know, but how you apply it.
Guess which one is happening faster?
These are the four markets I not only daytrade but also look for longer-term trading opportunities in. They also happened to be the four markets that will tell us when the worst of the panic is subsiding.
Today’s traders were a combination of an early loss (NQ short), trades that didn’t trigger our entry (US dollar buys) and then finally, a midday ES and NQ VWAP cluster bounce which salvaged a bumpy and overall unimpressive rally that included 850B of stimulus/bailout and helicopter money.
Trading overnight gaps at market open has been one of the most consistent bets in this market. Check out the video for more info on how I’m making money on these moves.
The Fed made their best effort to quell Wall Street’s fears, but it clearly wasn’t enough, as the market experienced its worst day since 1987 and went out right near the lows. I think we’re likely to continue seeing lower prices. Here is what I’m looking at, and how I’m trading it.
