Important if You Plan to Trade Stocks Today

The stock market is poised for one hell of a ride today (as of 6am)…

Volatility typically leads to contraction but in this global market you need to consider much more than technical analysis.

This is a much bigger story. That means we should see historic volume and price swings today.

The stock market bears smell fear and are out in full force. The rookies are looking for a dead-cat bounce.

Not a question the stock market is over-sold.
The question is whether or not you want to ride the roller-coaster, or watch it from the sidelines.

Do not make this decision at 9:30, you will be lost.

How to Plan to Trade Stocks Today

Stock futures (6am EDT) are set to open much lower again this morning.

  • If you are a day trading newbie, I would sit the morning out.
  • If you have experience, the volatility is great.

Swing traders have a different game plan. If you are long, you are hoping. Not a good game plan.

If you are in cash looking to buy, you are also hoping for a bounce because the market is not a buy. (also not a good plan)

I could traders see scaling into a position because you believe in a reversion to the mean type strategy, from what I read over the weekend, you will not be alone. (Boy that has worked so well for those scaling into oil)

Could we see a historic bounce?
Yes absolutely, we are set up perfectly for it. Is that a high-probability trade?

No. No ‘s not.

The market is bigger than you. Don’t pick a bottom.

All the Best,

Pete Renzulli

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