March 12th 2020 Worst Week on the DJIA down 2352.6 Points! What NEXT?

Have been holding my short positions for much of past 3 weeks, exiting at major support nodes, and re-entering on the short side on rallies into resistance.

I've managed to ride most of the move down. It was an incredible few weeks of trading.

Could I do some things better?

Most Definitely.

There was a clear trade trigger that would have given us a nice fill still near the highs ( will break this down during DiNapoli Masterclass ). I had been warning about the Muliti year resistance nodes for months, since Dec 2019... I made money off those levels twice... but I missed the big break, that 4000 point down week ( 3 weeks ago ).

Our techniques did allow us the criteria to go short the market during the break, but your ability to execute the trade and get your fill is a function of your discipline, and level of preparedness as a Trader - Which takes significant work - on your part - to stay sharp, much like an athlete.

It didnt help that we have super computers and algo systems dictating things, and they really smash this market down so quickly that most traders were unable to react.

But in the end we still managed to catch most of the down move in the 2 weeks after the initial break.

There is no room for regret. Only discipline to stay on top of your game...  your ability to control your emotions and psychology, and staying in the game, controlling your risks, get involve the best you can, while you look for trade opportunities with good risk reward ratios.

That retest of the 200MA was a gift.

So was the 900 point rally on tuesday.

I've recorded the entire day's price action today ( 930am - 415pm ) that will detail important price reactions that showcases our concepts well, uploaded that entire footage into the DiNapoli Academy Program.

We will be using this material as teaching material for Masterclass attendees.

 Lets look at some charts now :

We are approaching BIG confluence support nodes on the DJIA.

We should hit it on Friday.

ES - Yearly

Same picture on the ES - 2354.

Despite all the negative headlines you can expect to see on Friday, I expect us to have a rally from around these levels.

Thats my bias, at this moment, and will try to position in that direction on friday.

If we do break below that 2354 level with force... than the world will likely become a very different place to live in for the next year... we could go for 1709.25 next.

 ES Quarterly

We are Oversold on the Quarterly Charts.

As much as I was looking to be a seller at Y OP at 3270.75 and Q Over bought,

I am looking to be a buyer now at Yearly F3 primary node at 2354 + Oversold.

I would be patient on the entry. The downthrust we had was hell. It will be tough to do a V shape bounce.

More clarity at the market open.

Best of trading

Good Luck

Joseph AuXano

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P.P.S. I also had another question from a  member asking whether trading with 10K was possible, and whether he was under capitalized?

Short answer - Yes, and no.

It is definately more alot more difficult to be trade for a living using a small account.

But if you are starting out, your first objective is to learn, so you should not be trading with a big account.

But given the right conditions and opportunities ( like what we had recently ), if you have met the pre-reqsuites ( mastery of the technique and yourself ), it is possible to make big gains, using a small account! The last few weeks I wasnt trading with huge position sizing - 2 contracts - and this is because of the increased volatility and my decision to reduce size. So you dont need a huge account to realize the gains that we saw this week, for instance.