January Market Recap - End the month trading the Corona Virus

Traders,

We are trading against important higher timeframe nodes.

We have a potential Pandemic on our hands here with Corona Virus.

Both gives us good reason to be cautious this market moving forward.

I remain short this market since last week - and will likely remain so going into this week as long as intraday price action affirms my downside bias.

In this Post, I'd share with you some insights to what got me short this market last week, and how I'd approach trading the markets this week - around this developing corona virus Event that will impact the global economy one way or another.

 Below is a run-down of last week's market moves.

On Sunday, 26th Jan,

I shared the developing narrative during my weekly sunday analysis, and did my technical analysis of higher time frame charts, highlighting the importance of Q OP going into the trading week.

On Monday,

Markets gap down on monday, opened right at Daily K ( highlighted ), which supported this market.

On Tuesday, 

We started to see the beginnings of an epidemic in Wuhan China.

Wednesday

We had a market rally sparked by the signing of the USMCA .

We identified Daily F5 ( highlighted ) node as important resistance level to watch, post USMCA, in part due to the developing situation surrounding the novel corona virus.

On Thursday ( pre-market )

We traded back down to retest Q OP, which I've stressed all week to be the market fulcrum that will decide market direction this week.

Later we bounced strongly off Q OP and closed right against Daily F5 resistance into Thursday's market close.

On Friday ( premarket ),

markets traded back lower to retest Q OP ( Green line )

 We traded off that Daily F5 resistance, to retest Q OP once again at the US session open, which again will decide whether we trade higher or lower from here.

If you look at the attached video, you will see that we eventually broke below Q OP, and traded sharply lower.

Quick recap.

On Sunday 26th Jan we identified 3 Key Price Levels that are important.

Daily F5 Resistance ( 3297 )

Q OP ( 3270.75 )

Daily F3 Agreement Support (3235 )

We know these levels ahead of time. We have these 'Weekly Focus Lines' drawn on my charts the whole week.

With the signing of the USMCA and Corona Virus last week, look at how the markets traded around our pre-calculated levels.

We do this type of analysis and preparation each and every sunday,  followed by daily market updates as I trade the markets each week.

Critically, with where we are trading right now, against multi year resistance nodes and the uncertainty surrounding the Corona Virus - its impact on China, and the global economy - it is absolutely vital that you be on top of your trading game in the weeks ahead. If you are an investor, you want to know how to protect yourself as the risks are real.

I would like to invite you to Join us at Weekly Focus to follow our updates, as we trade through this uncertainty surrounding Corona virus together.

Best regards,

Joseph AuXano

DiNapoli Trading Academy