COV19 Feb 28th 2020 Market Update - Officially in a Bear Market
Still cant believe we have almost given up almost 50% of the gains in 2019,
all within a week. This is an understatement to how swift and viscous the recent market capitulation is. If anyone is telling you that COV19 is 'just another flu' think again. The Market is absolutely petrified by this novel corona virus.
At this rate of decline, we could see the lows of 2019 quicker than you can blink
( not at all plausible given the odds of a pandemic is not terribly unimaginable.
we dont want to see sudden outbreaks in more countries.
S.korea, Japan, Italy, Iran saw big sudden increases in just a couple of days )
This is not just a sell-off. It was a capitulation.
We have officially entered into bear market territory.
Talks of a recession will begin to surface, and rightly so.
We broke below the 200 day moving average yesterday. ( small reaction )
The pattern of breaking important higher time frame support nodes continued as well.
This market is WEAK .
We might retest the 200MA, but I dont see us trading back above it base off what I am seeing at the moment. If we continue to stay below the 200ma, with continued downside momentum - I fear that recession will hit.
This could very well mark the end of the 10 year economic expansion
Technicals suggests that. ( beginnings )
You might want to take on defensive positions.
There are also implications on how bad the COV19 situation can become.
The market certainly thinks so.
P.S. If we dont see price trade above 200ma, odds of a recession increases by the day.
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Author
Joseph AuXano
Author
Joseph Auxano, is an active trader with more than 13 years of market trading experience. He obtained his degree in Finance from the University of Singapore. His passion for the markets started early. He was already actively involved with the stock markets before landing his first Job as a Trader at a Commodity Trading House in Singapore. His fascination for the markets continued to drive his search for the Holy Grail of Trading, and his research on Fibonacci Techniques. This led him to discovery of DiNapoli Levels in 2007. Since his training under the tutelage of Veteran Trader Joe DiNapoli, he has since developed as a Professional Trainer and a full-time trader. It was with DiNapoli techniques, that he discovered first hand the freedom that came with trading. He has traded the markets out from Toronto, Miami, Siesta Keys, Singapore, and is now trading the markets out of Bangkok Thailand. Joseph Auxano is an Authorized DiNapoli Expert, representing DiNapoli Levels Methodology in the USA, South America and around Asia. In 2019, with the help and approval of Joe DiNapoli, Joseph developed the DiNapoli Academy Online Course, with the goal of helping aspiring traders in their journey with Dinapoli Trading Techniques.
