Rarely have I seen a market become completely hostage
to a fundamental news event as this market is to the
US/Chinese trade talks.
At any given moment, any news report updating the
progress or lack of it, seems to jolts the market on either side of the trade.
Last night I suggested shorts cover,
after having over 100 points of potential downside in the bank,
with the technical pattern suggestive of a sharp snap back move back up.
This morning with no agreement in sight, talks continuing, and new US tariffs
raised from 10 % to 25 % overnight, S+P Futures are once again are trading down double digit.
With today's trading, and the long weekend ahead,
there simply is to much "risk" on either side of the trade,
accompanied by the element of huge immediate surprise
for me to want to be in this market, or to know what will really happen next.
The technical damage substained by the market this week,
is acute, and until/if the S+P 500 gets back above 2954,
trend continues down, with 2900 now quantified resistance.
If the S+P takes out this weeks low at 2836,
then trader's may gun for 2800 major support next
Traders should use absolute discretion in position size and stops,
and look to get in and get out as soon as possible
so as to not be whipsawed into a sudden very large losing trade,
until some final, even temporary resolution of these trade talks is complete.
This is one of those rare times,
where you might find better odds in risk management posted at the casino.
THE_UNWIND
5/10/19
NEW YORK
to a fundamental news event as this market is to the
US/Chinese trade talks.
At any given moment, any news report updating the
progress or lack of it, seems to jolts the market on either side of the trade.
Last night I suggested shorts cover,
after having over 100 points of potential downside in the bank,
with the technical pattern suggestive of a sharp snap back move back up.
This morning with no agreement in sight, talks continuing, and new US tariffs
raised from 10 % to 25 % overnight, S+P Futures are once again are trading down double digit.
With today's trading, and the long weekend ahead,
there simply is to much "risk" on either side of the trade,
accompanied by the element of huge immediate surprise
for me to want to be in this market, or to know what will really happen next.
The technical damage substained by the market this week,
is acute, and until/if the S+P 500 gets back above 2954,
trend continues down, with 2900 now quantified resistance.
If the S+P takes out this weeks low at 2836,
then trader's may gun for 2800 major support next
Traders should use absolute discretion in position size and stops,
and look to get in and get out as soon as possible
so as to not be whipsawed into a sudden very large losing trade,
until some final, even temporary resolution of these trade talks is complete.
This is one of those rare times,
where you might find better odds in risk management posted at the casino.
THE_UNWIND
5/10/19
NEW YORK