A mixed day on the street Monday, but with volume lagging Friday’s session indicates sellers lacked power. IWM dropped 2.71% on the day, but daily ATR dropped. Volatility is contracting across the board and it comes as no surprise as we move away from March’s decline. SPY dropped nearly 1% but it too had a decrease in daily volume. NFLX 7% gain lifted the QQQs as the ETF finished with a gain of 1.08% on the day. All in all, not a bad trading session. There were several day trades our chat members caught which were quite fruitful. Opportunity surrounds us. It is a matter of taking advantage when you are properly prepared.
Futures are indicating another gain at the market open. Volume will likely pick up from yesterday’s level and we will be keen on how price reacts. Crude Oil is falling again, the production cut led by Russia and Saudi Arabia simply didn’t provide the pop they were expecting. Besides, OPEC member nations very rarely adhere to anything remotely to what they agree on. Given Crude Oil prices are at multi-decade lows these countries who heavily rely on high prices experience issues soon. Life as we know it has changed causing a massive ripple effect across the globe. How and when the economy is let to open back up is anyone’s best guess. Expect the market to experience some hiccups as plans begin to emerge. There will be skeptics and while no plan will be the best the market will certainly guide us through price.
Earnings season is upon us and if opening the economy back up wasn’t a big question market Earnings has one. What will companies report? We’d expect an abundance of caution with regards to guidance if any is given. Price will be the ultimate decider. No reason to be a hero either.
Stay the course. Stick with Big Wave Trading.
