Professor’s Comments May 15, 2020 – A few Comments before today’s open
Posted by professor at May 15th, 2020
After an initial decline from EXTREME oversold conditions, the Dow rallied to finish with a gain of 377 points, closing at 23,625. However, the large cap index still remains well below its close from three days ago. Whenever a rally like the one we had yesterday occurs after back to back 90 percent down days, it usually leads to a resumption of the downtrend the following day. So, we’ll need to pay attention to the short-term indicators today because if the Dow starts off to the downside, the odds are high it will continue in that direction. The average loss after a retracement rally from two back-to back 90 percent down days can be large, exceeding 2 percent.
The Model Portfolio is being shown for educational purposed only. The Buy/Sell actions in the Model Portfolio are made based on technical indicators that can and do change frequently and should NOT be considered as recommendations for trading an actual portfolio. Any gain or loss in the Model Portfolio should not be used to predict future performance of the Model.
Not sure of the terminology we use? Check out these articles
All of the commentary expressed in this site and any attachments are opinions of the author, subject to change, and provided for educational purposes only. Nothing in this commentary or any attachments should be considered as trading advice. Trading any financial instrument is RISKY and may result in loss of capital including loss of principal. Past performance is not indicative of future results. Always understand the RISK before you trade.
Category: Professor's Comments