Way of a Trader Blog

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...

Today's market focus shifts to the signing of the USMCA (United States–Mexico–Canada Agreement), the market just wouldnt be allowed to tank on a day like this.

We did have a huge drop near the open to cover the gap, and found support at Q OP that we have specifically highlighted this week to be the market fulcrum.

We have Fed Decision soon but expectation is for rates to be held steady.

Eventually, the focus will soon shift back to the Corona Virus. We already know that it is more contagious than sars, less deadly - and has all the potential to have a Sars like effect on the economy - given what we have seen in China.

Here is the Key.

Has containment worked? Will this be contained within China?

This is a dynamic situation that can change very quickly.

Watch the Heat Map

Price broke above Q OP, retest and intraday showing strength at the minute.

30min and 60min uptrend could get us to F5.

The market fulcrum remains at Q OP

Based on CDC's statements, there is no immediate real term risks for the corona virus to hit the USA, even though they acknowledged that they are dealing with a situation that is in a constant state of flux.

The sentiment today, at this moment in time intraday, should remain bullish, until further news or developments regarding the situation.

We are trading back above Q OP.

Short to mid term markets are bullish, should see us trading higher.

Risks for a global epidemic remains low at this point.

Best of Trading,

Joseph A

DiNapoli Trading Academy

As anticipated, much of the news coverage today was focused on the corona virus.

We do not know much of the virus yet, in terms of its origins. ( Likely bats - again. People, please just stop eating them ).

We do know that the Mortality rate is lower compared to Sars - less deadly. ( thank God )

But the corona virus is more contagious.

For the next few weeks, you will want to monitor this heat map.

Why is this significant?

The corona virus has already proven that it is a virus that has the capacity to have a SARS like effect - situation in Wuhan is dire - and the rate at which the virus is spreading across China is alarming.

The virus has all the innate capacity to repeat the SARS crises of 2003.

The only thing going for us, is that the world is better prepared to deal with this epidemic. Crucially, with SARs, it took close to 4 months before governments around the world knew what hit them.

Today, Governments are more vigilant. The hope is that this crises can be now contained...

Hi,

Welcome to the Academy, which is an accumulation of more than a decade of market experience, trading using DiNapoli Techniques.

My pursuit for market knowledge about how markets work, about trading saw me travel around the world to learn from some of the Best in this business.  I've watched price action react to major Dinapoli nodes on higher timeframes. I've also lived and traded through major events on lower timeframe intraday charts when news and information unfold in real time.

Corona Virus, Iran Missile strikes, Trump Tweets, US China Trade Deal, Greece Bailout, 2009 March lows, 2008 Subprime crises, I've lived and traded through these events. 

When you are equipped with the knowledge and tools, and experience how market price action reacts with this knowledge you will be able to acquire from the Academy, everything changes.

The way you look at the markets,  the way you look at trading, the way you look at the world ( how everything is connected to the...