As we begin another week in Quarantine Crude Oil resumes its march lower. June Crude Oil is down more than 20% as the lockdown has no end in sight. Stock futures up near 1% to begin the week. A high-volume push higher is what this market needs. Whether we get it remains to be seen. We do not control where this market goes and with the Federal Reserve Bank pumping trillions into the market there is no telling where this market goes. The cards we are dealt are the only ones we can play with but our ace up our sleeve is the way we approach and execute. There is no need to get emotional by getting angry at or with the market. Do not fight the fed and do not fight this market.
Small Cap stocks led the market higher on Friday. It is little flag pattern here is interesting. A big volume push would signal the group has a bit more to go. Of course, anything can happen, and a reversal is always around the corner. We cannot worry what might happen. Control your risk with proper positions sizes and exits. There is always an option to sit out and given where we are with the market it is not hard to see why. Word of caution is when you do sit out missing gains can be detrimental to the growth of your portfolio. Know your risks and know yourself. This will go a long way towards your trading success.
Sentiment from last week shows bears remain supreme. More than 50% respondents are bearish on where this market will be six months from now. Bulls are well below normal and it is not hard to see why at less than 25%. There is not a feeling we are going to get through this pandemic any time soon. Time will tell.
We hope you have a tremendous week!
