It’s continuing to be a great environment as long as we recognize that 1) We are trading in a greater-than-normal volatility environment. 2) Bonds, Gold, and Yen continue to tell the story. 3) Daytrading the extremes have been effective all week. It does not have to be long term to succeed in this market.
In this video, we discuss the massive sell-off from the Corona Virus effect. We look at levels, what to expect, and where the market might trade in the future.
This is what determines my directional bias each morning as a daytrader, and that is looking at the relative performance for the Japanese yen.
What is the message of this market and how do we see past some of the bull and bear traps that the volatility is setting?
Ignore the news and try this — it works much better.
The key in this market is to ignore the news, pay attention to the tape, and appreciate cash.
Short-term today’s bounce may raise some spirits that the markets are out of the woods. Long-term, the sellers are just waiting for their price — like I am. Here’s the explanation for the two time frames and setups.
