A light day on Wall Street for Monday’s trading session as stocks close lower across the board. Volume was lower across both NYSE and the NASDAQ. A heavy volume day with hefty losses would have indicated institutions were active in dumping stocks. No matter your opinion on the market and the current climate we do have a scenario set up where a follow-through day can occur. Even if we do see a follow-through day it does not guarantee the market goes higher. All eyes continue to focus on US-China Trade relations, the Hong Kong protests, and the Yield Curve. Seasonality is not in the market’s favor and thus, we have a tricky situation. We must remain disciplined and remain hyper aware of our open risk. There is no need to be a hero in this market. As a trader we must always protect our downside. This market is unrelenting, and we will remain vigilant.
We continue to preach keeping an open mind when it comes to the stock market. While it is difficult to implement given the current market climate. Monday’s losses weren’t on heavier volume, a silver lining for stock market bulls. On the other hand, there is a lot going against it as well. Most will think another 2008-09 scenario is about to happen, but that does not have to be the case. Even the last quarter of 2018 did not end up being a nasty bear market. Most thought we were about to crater into oblivion. It pays to control your risk through position sizes and exits. We cannot predict the future nor can anyone. Therefore, we must trade on price and not our opinion. There is a high likelihood we will face a difficult market ahead and we will be prepared for whatever is to come.
We hope you have put yourself in a good position for this market. This will not be an easy stretch. Most think they can get rich overnight in the stock market. If you are not willing to put in the work, it will be difficult to be successful. With Big Wave Trading we make it easier for you to handle the workload, but you still must grind. Fall in love with it and you will be successful. We hope you have a great day of trading.
