Global Stock Markets Seek Interest Rate Rescue from Coronavirus
Welcome back to Smart Money Alerts Monday March 2, 2020...
The critical mass of selling across global stock markets has paused. We are far from out of the bearish woodshed but this heatmap from Friday February 28, 2020 shows signs of relief.
There's a massive difference between buying and short covering. Although they are both buying, they translate into unique trading setups.
Buying moves stock higher (generally), short covering is buying that is exiting a short sale (a trade where you expect prices to go lower).
Friday's short covering paused the selling in hopes of fresh buying coming in. WE saw plenty of news articles predicting the FOMC will step up and cut interest rates early.
I like the concept but I'm sticking to the charts. I'm nibbling on the long side with discipline to exit if the bid does not hold.
The headline we want to see is a cure. We don't see that.
In today's episode of Stocks for Breakfast we absolutely have a few bullish opportunities such as Z, NVDA, SQ and NFLX.
But my favorite chart setup is on display in ROKU and WYNN. See the chart here.
In today's video I explain this setup and exactly how to trade it. You'll also see how I use it as an entry signal. It's a very powerful chart pattern.
I also review the Bullish U-Turn to demonstrate a reliable reversal pattern.
If you have any questions, send me an email: [email protected] or leave a comment on YouTube under the video. Don't forget to subscribe the the YouTube channel to get notifications about updates.
Have a great day.
Pete
PS: Here's the trading book I mentioned in the video too!
Why Everyone is Getting Rich Right Now – And You’re Not
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Wall Street is wondering if the Fed can heal a coronavirus-stricken stock market
A historic week for the stock market ended with a big, fat question: What will the government and the Federal Reserve do about the coronavirus outbreak that threatens to decimate the longest-running bull market on record?
Read More | marketwatch.com/fomc-coronaviris
Reinstating this old trading rule would help the market more than a rate cut, Leon Cooperman says
Read More | cnbc.com/uptick-ruleNike temporarily closes European headquarters due to coronavirus case
“The place is on lockdown,” a security guard at the location told Reuters. Roughly 2,000 Nike employees from 80 countries work at the site.
Dutch health authorities have reported 10 coronavirus infections since Feb. 28.
Read More | reuters.com/nike-shutdown
