The Silicon Valley Bank situation. A a poor trade or a failure by banking regulators?
An unfortunate situation for many businesses, and the people behind them, should be a fantastic opportunity to trade. Tape reading comes from and center this morning.
You can expect the price action to be volatile and appear to be chaotic. You’ll need to make fast decisions. It’s in these moments that you need to be honest with yourself. Can you, should you get involved?
// The fear of missing out is real and will be strong. Remember why you’re placing trades. To accept risk in situations where the odds of hitting your profit target are significantly greater than hitting your stop loss.
In this case, many will be chasing volatility, not certainty. The back and forth will knock you around and make you feel like you know nothing about trading. And worse, doubt your skills.
I’m not being a Debbie Downer; I’m offering some experience. PPC when it’s the right play for you. (Preserve Precious Capital)
If you’re in the other corner, and you have experience, get ready to double your activity level. That means more trades, more decisions, and especially faster decisions.
Professional active traders live for these situations. It will be helpful to have hot keys setup for days like today.
Tape reading, and the speed with which you can interpret the buying and selling pressure gives you a BIG advantage during extreme volatility.
If you got it, flaunt it. This week is the time to do it.
If you don’t be smart and think long term. Don’t let social media peer pressure put you into an uncomfortable situation. You might not be trading for a living, but this is your chance to act like a pro.
Only accept risk if the odds are stacked in your favor, and you can make fast correct decisions. For you, it should be an amazing day of price action to trade.
As the SVB situation unfolds, sector rotation should fast this week. But let’s start with stocks showing relative strength. Three of the top seven stocks from last week are in the consumer cyclical sector: #SE #DKS and #DHI.
Other than that, slim picking on the bullish side of the tape for the last five days.
Technology has the most stocks above the daily 50 sma. #AMD #NVDA #CRM and #ANET should be on the early watchlist for the week.
Industrials looked solid prior to last Thursday, so they deserve a bullish look. Stocks to watch include #PCAR #FDX #UAL #ETN.
And of course #GE.
The bearish side of the order flow shows financials in play. #SIVB #PACW #SBNY #FRC. These moves will be volatile, so choose your way. If stocks, I’d plan to build a position. Getting the exact entry will be tough.
If with options, be sure to know if the premium is worth buying. They will be inflated beyond norms today. You might be able to “afford” the option