Indice S&P 500Long
Keep Calm and Keep on Watching the charts
Aggiornato
Notice I said watching and not trading? There are lots of noises out there currently with one camp saying to do DCA (dollar cost averaging). Nothing wrong with that if you are familiar with the fundamentals of the Company that you are invested in. However, cheap can get cheaper and DCA may be like being killed by a thousand blades (slow death). So do exercise caution. When in doubt, no need to take action (as I said before, clicking the mouse to buy or sell takes 3 seconds)
Then, there is the FED rate cuts by half a point but that apparently failed to calm the markets and traders are panicky and started to sell off.
Some other experts are saying more rate cuts are not going to resuscitate the market as this is a health crisis and not a economic crisis. That depends on your perspective as well.
So, what do you do now ?
This is my friendly suggestion , NOT advice :
1. DO NOT ADD any more positions until the coast is clear. You need time to monitor your portfolio and adequate capital if you want to add in. Hold your fire first.
2. Trailing Stop Loss - protect your positions. Those that are in profits, ensure you adjust your trailing stop loss as you do not know what is going to happen in the market. This irrational behaviour can takes place anytime and you do not want to see your profits evaporated in the air nor turn into losses.
3. Ensure you have adequate capital to meet the margin requirements
4. Take time away from the computer screen. More staring at the screen is not going to change the down move to up move or vice versa. Stay cool .
5. Exercise - physical and mental - Physical - run , swim or dance,whatever you like. Working out helps to clear your mind and reduce your stress. Mental - go to a quiet spot and meditate, chanting the positive things you want in life. See it , hear it , feel it .
6. Compartmentalise your trading from other areas of your life - Just because your portfolio is temporary in the red does not mean you have the right to yell, quarrel or worse, fight with your girlfriend , spouse or kids. Vent your anger in a healthy way through exercise.
This goes for your hobbies, career , family ,etc. Let not one part affect the other that is going strong and healthy.
7. Be Prepared - Of course, we all want the market to do a V-shape recovery as soon as possible but we do not control the market. So be prepared for another leg down. Look at the black horizontal line - price at 2717.60. That is where the SPX500 would fall exactly 20% from the peak. If this level is breached, then we are in for a bear market. Anything above that is still a healthy correction. And if this correction comes, ensure you have adequate funds to meet the margin calls. Otherwise, reduce your positions, taking the weakest out , not closing the profitable ones.
We must consider ourselves blessed to witness once in a lifetime opportunity where such a parabolic 90 degree dive has ever happened before. Like the unicorns that rake in billions faster and faster, so is the stock market performance.
I will keep you guys in my prayers and know that God will continue to rain blessing after blessings upon us. Abundance, peace, harmony, love , joy ,etc are with us!
Peace.
Then, there is the FED rate cuts by half a point but that apparently failed to calm the markets and traders are panicky and started to sell off.
Some other experts are saying more rate cuts are not going to resuscitate the market as this is a health crisis and not a economic crisis. That depends on your perspective as well.
So, what do you do now ?
This is my friendly suggestion , NOT advice :
1. DO NOT ADD any more positions until the coast is clear. You need time to monitor your portfolio and adequate capital if you want to add in. Hold your fire first.
2. Trailing Stop Loss - protect your positions. Those that are in profits, ensure you adjust your trailing stop loss as you do not know what is going to happen in the market. This irrational behaviour can takes place anytime and you do not want to see your profits evaporated in the air nor turn into losses.
3. Ensure you have adequate capital to meet the margin requirements
4. Take time away from the computer screen. More staring at the screen is not going to change the down move to up move or vice versa. Stay cool .
5. Exercise - physical and mental - Physical - run , swim or dance,whatever you like. Working out helps to clear your mind and reduce your stress. Mental - go to a quiet spot and meditate, chanting the positive things you want in life. See it , hear it , feel it .
6. Compartmentalise your trading from other areas of your life - Just because your portfolio is temporary in the red does not mean you have the right to yell, quarrel or worse, fight with your girlfriend , spouse or kids. Vent your anger in a healthy way through exercise.
This goes for your hobbies, career , family ,etc. Let not one part affect the other that is going strong and healthy.
7. Be Prepared - Of course, we all want the market to do a V-shape recovery as soon as possible but we do not control the market. So be prepared for another leg down. Look at the black horizontal line - price at 2717.60. That is where the SPX500 would fall exactly 20% from the peak. If this level is breached, then we are in for a bear market. Anything above that is still a healthy correction. And if this correction comes, ensure you have adequate funds to meet the margin calls. Otherwise, reduce your positions, taking the weakest out , not closing the profitable ones.
We must consider ourselves blessed to witness once in a lifetime opportunity where such a parabolic 90 degree dive has ever happened before. Like the unicorns that rake in billions faster and faster, so is the stock market performance.
I will keep you guys in my prayers and know that God will continue to rain blessing after blessings upon us. Abundance, peace, harmony, love , joy ,etc are with us!
Peace.
Nota
Praise the Lord. Congrats to those who have the faith and hold on to your longs. You have been handsomely rewarded. cnbc.com/2020/03/03/dow-futures-show-300-point-pop-as-early-super-tuesday-results-favor.html
Nota
Unless you have adopted what I have been preaching since a long time ago about using trailing stop loss, you are either in loss or stop out. Sorry to hear that. The volatility is getting more serious as we witness bond yield at ultra low and VIX at sky high level never recorded in history before. This phenomenon is unusual and something is brewing and it is scaring a lot of people out.
If you have limited capital , you may want to stay out of the coast until it is clear as it takes more than a brave heart to be in the battle.
Nota
Not good at all. It has now breached the bullish trend line. If you want to short, wait for the pull back first. The Oil shock has now overtaking the attention of Coronavirus and sending a panic over the stock market. Major indices worldwide have gone south for another 4-5% from last Friday. Be extremely cautious now....Nota
expect a rebound later . closing candle is hammer pattern. probably goes up to 28100 and watch if it continues to fall from here.Nota
Praise Lord. Congrats to those who followed.Nota
Sorry guys, the long time is so short, wish we could have more time to party. Now the party is over and things are going belly under, please stay strong in whatever you do. If you have to cut loss, do it unless you have sufficient capital and are willing to wait for the tide to go out. I have several followers pm me they can't sleep over their paper losses, getting larger by the day and they are stressed out, anxious and unable to focus at work. This is unhealthy and not acceptable. Do something about it to take away the pain. The monetary loss is temporary as money can always earn back. Health is more important and to fall sick at this juncture is absolutely not a good time. Do not put a price tag on health.
Nota
This chart is crucial now that we want to further understand if the bullish move is over. As you can see, the bull stop its move at 2959 level, ie the red candle that breaks down from the bullish trend line on 9 Mar 2020.If over the next few weeks, we can see the price heads further south and went below 2717.60, that would add confirmation that the bullish move is over.
Let's see next week how it goes.
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