If you haven’t been paying attention to the stock market the past two months you may need to do a double take.
The Big V
Just as the market broke key technical levels and broke down lower, putting us in “bear market territory” after falling 20% off the highs.
Just like that all is well in the world again as we have rallied nearly 15% to start the year.
How do you even trade this?
In the end we sort of got a capitulation bottom as volume did rise and spike to the highest level in over a year on that final down day before getting that big green candle.
The market preceded to rip back higher as fast as it dropped lower and now we find it bouncing of the 10 day moving average after a healthy gap lower.
I will tell you one thing – I am certainly not trying to short this thing. However I’m not 100% in love with the long side. I suppose as a straight risk-reward trade you could try a long here with the 10 day as the stop loss and Tuesday’s high as the first profit target. You better have the time to pay attention though.