We don’t think today’s rally of 1000 plus points in Dow is the turn around. Choppy markets and investors getting whipsawed is the way of trading for now. Professional day-traders are having a blast.
Last month global Covid9 outbreak ended the market’s old “buy-the-dip” dynamic. Then on Monday, crude oil price war between Russia and Saudi tanked the markets and sent shivers through already global fragile financial markets. That was insult to injury.
Market panics come and go. So, don’t be complacent and not take the trade when a valid technical formation happens. That is what we intend to do as traders at ETF Trade Advisor. We are ready for any base building for SPY. There could also be a short formation if we have run up in S&P. Whatever markets give us, we will trade base on our technical rules.