After a long weekend stocks are set to open lower. WMT disappointed with earnings out of the gate Tuesday including its outlook. Not the kind of news you want to see to begin the day. QQQs and SPYs remain above their 10-day moving average. Something to keep an eye on along with distribution days as we close out the next two weeks. Small cap stocks as seen with IWM are once again in a consolidation pattern and have yet to catch up to its counterparts. Outside of financial news outlets we have mainstream news organizations continuing to harp on the Coronavirus. Scenes of quarantines certainly do not help with keeping a bullish outlook on the market. Regardless, we are obedient with price action and disciplined in our approach.
There is no need to panic and get off our game over fears and in the inverse hype. Stay the course.
Manufacturers in China are certainly going to feel some heat. News of factories shutting down as workers are forced to stay home are spreading. We are sure the fears will ding companies. The stock market has a great way of quickly discounting the news, but we shall see. We have seen this market not look back since October of last year. A good correction to restack the deck would do a lot of stocks some good. We cannot make this market to do anything and it is best we do not try. Forcing trades is not something we would recommend. Guessing in this game will certainly lead down a path of destruction. We want to grow our account not trade it away. The grind is not easy, but if you are willing to put the work in your account will thank you in the long haul.
Let’s see what the market has in store for us this week. We are sure headlines will help provide a few fireworks, but we’ll stay focused on price and price along. Our risk management process helps alleviate any fears over big losses. Yes, you will lose on trades and trades will not work out. The key is sticking with the winners and shedding losers. We hope you had a great weekend and wish you the best of luck this week in your trading.
