Volatility is the way of life in the market since COVID-19 hit. We will continue to see volatility as this market works out the new normal. Most are trying to guess what it will look like while we focus our attention to what really matters and that is price. Crude oil prices continue to fall and will do so until light is at the end of the tunnel in terms of travel by all modes. Potential for volatility to continue will be fueled by earnings reports. JPM and BAC reported this morning and the market did not like the results. Continued weakness in earnings and negative reactions may put this market back to where it was last month. Regardless, the future is unknown, and we cannot predict the future. What we know now is we have rebounded in a swift manner with a few names setting up. One step at a time.
Aside from seeing multiple daytrading opportunities there are swing trades setting up nicely. The market will have support continued moves. AMZN and NFLX which have been mentioned a few times in chat have ignored fears over stay-at-home orders and have hit new highs. It pays to follow market leadership versus listening to the news. AMD, ZM, and TSLA are just a few names that have been bounced around the chat room. We pack so much value in the Platinum subscription we should really be charge a lot more for the service. However, we believe in getting the most value for your dollar and in these times, it is even more important.
Earnings season is going to be very interesting. While most say this every time earnings rolls around there is more of an emphasis. Guidance? How can guidance be issued with a lack of a return to work timeline? How will the market react to the lack of guidance? Will it provide better opportunities for us to trade when the unknown is so large? These questions will be answered as time presses forward. If we have a sound trading plan and do not trade with our emotions, we’ll conquer whatever the market will throw at us.
We hope you have had a successful week of trading thus far. Continue to grind and focus on risk management.
