Corona Virus Feb 13th 2020 Update - See Price Action as News of 60K confirmed cases hit the Wire!

We are in uncharted territory, with the Novel Corona Virus.

First - the fear that China was under-reporting cases was realized.

Second - new inferences should be made to the risk of spread if this epidemic ever becomes a pandemic. The number clearly shows that this is far more contagious than we are led to believe. which highlights the importance of containment efforts by governments - and ultimately to our very own well-being.

What is interesting - is wallstreet's reaction to all of this.

At 6:50pm New York Time - this 60K news hit the news wire :

The market quickly traded lower - with strong thrust.

It made a  short retracement back to known resistance nodes, ( red and green resistance lines - F3 and W OP ).

This was when I managed to short  the market.

( I sent out the post as it happened )

Price hit our pre-calculated K confluence support node during European trading,

when I not only closed my shorts, but reversed and went long the market.

This ultimately proved to be the low of the move.

You can clearly see the advantage of using leading indicators, that identify support and resistance nodes ahead of time - and the difference it can do to your trading.

You can also check out the attached video for a quick summary of today's price action. Unlike many who teach about the markets, we trade using what we teach.

This post is really a follow up to the earlier post I sent out.

Why would anyone stay up at 650am Bangkok time - to share this news to anybody that cares to listen?

Because if you are a Trader - equipped with the right tools, these news driven events creates price volatility - and price volatility leads to trading opportunities - opportunities that traders live by.

But more than profiting from these opportunities - is the impact these black swan events potentially have on the markets, the economy, and your overall well-being.

We are once again trading near all time highs.

What happened today - the 60k news, was brushed aside by Wallstreet.

Is this really the case? Only time will tell. As evident today - sentiment can change in an instant!

But did you notice that the way priced moved today has been very strategic?

Price turning on very specific points - in relation to to the news wire.

Part of the job as a trader is to see through this fog - of price and news, and figure out what is truly going on...

There are a few parallels worth mentioning.

Increasingly Governments around the world are introducing measures to control the spread of the corona virus. It is interesting that different governments, entities behave quite differently - depending on their interests, economic & political.

The USA - thus far has been playing down the risks of the virus. Elections coming.

Singapore where I'm from - has been very transparent - as their aim is ultimately to contain localized spread of the virus. 

China - may have been under-reporting the true statistics in their attempt to control the situation.

I'm currently trading out from Thailand - which has the most tourist traffic from China - There is no way the number of corona infections is lower than that of Hongkong or Singapore where strict containment measures and travel restrictions have been put in place. Thailand has yet to place travel restrictions on China - as tourism dollars from China takes up a significant percentage of GDP.

It has resulted in a backlash from the public .

Depending on  their positions, the way the situation is reported to the people - has been slightly different.

This is not too dissimilar to wall street, where we simply cannot make trading and investing decisions relying on news.

You got to understand how markets really work to make sense of this.

As my mentor, Joe DiNapoli say all the time, 

" They can cheat, they can lie, but they cannot hide"

PRICE ultimately reveals the truth.

Moving forward, how price reacts to our pre-calculated technical levels, tell us what we need to know - with the markets, the economy, even clues to where we are heading with this corona epidemic.

If the risks for a pandemic increases - believe me, the market will tell you.

It is my hope that you gain some insights from this sharing.

May this be the start of a paradigm shift - a new way of looking at the markets.

Best

Joseph AuXano

DiNapoli Trading Academy

P.S : Interested to gain further insights to the markets, how markets work, especially with our techniques? Check out our Weekly Focus Newsletter.

There is a free trial on offer.

P.P.S : Stay connected with us here for more market updates. I suspect the corona virus situation will remain in focus in the near term, and like you, I am a concerned citizen. ( Ready to lock my self in my trading room for a few months, should this turn into a pandemic )

Stay safe, and prepared!