On Friday April 17 the markets plunged and on Monday April 20, markets rallied back reclaiming more than 50% of Friday’s loss. Normally when a market plunges and there is more downside ahead, a rally back is about 50%. Therefore when we see a rally after a big down day, but it recovers just 50% we know that the rally is probably going to fail.
Monday’s rally though may not fail. Not only did it recover over 50% of Friday’s loss, it also recovered the technical support levels of 2075 and 2100. The problem is we have seen this picture before. We have seen the market rally a day after a big down day and then drop again within a day or two. This is typical of sideways markets that are stuck in trading ranges and are basically going nowhere. It can also be a tough market for investors. To get around that my investing strategy notes for the week ahead contains a few trade ideas as well as strategy notes.
The Week Ahead strategy article is for FullyInformed USA Members
Investing Strategy Notes And Trades for The Week Ahead – Keep On Profiting
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Disclaimer: There are risks involved in all investment strategies and investors can and do lose capital. Trade at your own risk. Stocks, options and investing are risky and can result in considerable losses. None of the strategies, stocks or information discussed and presented are financial or trading advice or recommendations. Everything presented and discussed are the author’s own trade ideas and opinions which the author may or may not enter into. The author assumes no liability for topics, ideas, errors, omissions, content and external links and trades done or not done. The author may or may not enter the trades mentioned. Some positions in mentioned stocks may already be held or are being adjusted.
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