Haven’t We Been Here Before?Bruce Marshall
We all know how rough trading the market has been since the first of the year. We started the year by rolling over 15% in the S&P and now have rallied back 15% just to end up basically at the same place we started on January 1st. That is a whole lot of movement and anguish for a scratch for the first quarter.
We now find ourselves at a critical juncture. The overall sentiment is bearish, but these type markets can continue higher and could test the highs, especially with short covering, so be careful shorting here.
Lastly, remember that we start earnings season this coming Monday, April 11th with Alcoa (AA), reporting after the close. Fasten your seat-belt for this earnings season, as we are sure to have more wild swings. I see lots of opportunities in the coming weeks, but you must be patient, and you must be strategic in your trades. Use hard stops in this market and know your profit and loss targets before you enter these treacherous waters.
Good trading next week and have a great weekend!
Get more of Bruce Marshall’s market commentary, trade analysis, and real trade recommendations at Simpler Options.