- March 2, 2020
- Posted by: Daniele Prandelli
- Categories: Forecast, S&P500
Is this the end of the bull market, or is this panic-selling going to be a great buy opportunity for Stocks?
I know, this is scaring. This is not a pullback, this is a panic selling.
I have a simple advice to be able to read this situation: look at what happened in the past when we have seen a fast and strong movement like this. You should check it. I did my own homework, and it is very hard for me to believe that this is not going to be again a great buy opportunity. We always have the feeling that what we experience now must be special, different than what happened in the past. Then, we look at the past and we see how many times we see similar patterns. So, should we panic? I guess it is better we do not panic at all, but we use our time to read the actual pattern.
The coronavirus seems to be the real reason of this panic-selling. Do you know the real numbers behind this virus? I am sorry, I do not see how this virus can really stop the economy of the entire world. I am not an expert about it, but it seems more like an obsession than a real catastrophic situation. It is a matter of time, and all will be solved. Then, what will be the excuse to justify the markets at -20%? It is hard to believe that this is not going to be a buy opportunity, but we must be disciplined and have a precise strategy to take advantage of it, and protecting the positions in case we are wrong.
We will see if I am reading this situation in the correct way or not. However, planning a strategy in trading does not mean that we follow our point of view, or opinion. We have charts and the price never lies.
How did I handle this panic-selling?
I did not SHORT the Market, despite I was expecting a descent from the end of January until March. I preferred to follow the uptrend because it was very strong, and it gave us huge profits in 2019.
I provided a very important level where I said that we could not be LONG in case of a breakout under it. This level is at 3205 Futures Points of the E-Mini S&P500. So, it is absolutely not bad, considering that the S&P500 is now at 2950 points. We have protected the profits we made in 2019 with a very precise strategy.
If you want to know the reason for the strategy, and how to use it to make profits in the future, I explain it in a Special Update that I sent to my subscribers. With this strategy, you could also follow the downtrend, and I gave this strategy in December! Subscribe now to the Daily Report Service or to the Weekly Report Service and you will receive this strategy, simple and clean.
How to handle the actual Market?
The volatility is high, hence, the Market is not going to be easy. I do have again a precise strategy. I have a potential precise timing to know when we have to buy to take advantage of a bounce that has to happen.
For sure, we have to accept the risk of trading with high volatility. On Friday, February 28, there has been a 15-minute bar that moved 90 points in the S&P500! can you imagine it? It is so much! When the volatility is so high, trust me, it is very easy to take very bad losses! Much more than making big profits because it is very stressful.