Well Friday was fun. Big nasty drop and a vicious rally back up. Standard script right? After all we’ve all become accustomed to drops not lasting more than a few hours or days no matter what happens in the world.
I’ve received a lot of questions about the rally at the end of last week in particular as a lot people expressed surprised that it happened and happened so vertically again especially in light of the weak data points that came in throughout week. Let me assure you the rally made perfect technical sense as did the drop before that.
And hence in today’s technical video I’ll focus a bit more on the granular aspects of navigating through these moves technically to help address some of these questions and also to show how important and useful technicals are in adjusting positioning to take advantage of these moves. After all, at the end of the day, this is what this is all about. Figuring how to take advantage of the volatility and how to identify turning points.
Before I do that a few comments on the larger backdrop. Let there be no doubt that this week is shaping up to a major event week for stock markets around the globe. It’s decision time. Trade deal or no trade deal, interim deal, easing of tensions, or another pushback