Stocks have FINALLY produced a significant oversold bounce. While Tuesday looked like it was mostly short covering today's gains felt like there was actually some buying going on. This bounce could last for days but keep in mind this is only a bear-market rally until proven otherwise. We can't get attached to our trades going either direction.
The S&P 500 is up 11% in just three days. The NASDAQ Composite is up almost 12.5% in the same time period. The Dow Industrials are up 620 points. Stocks have rebounded extremely fast, which is completely normal for a bear-market rally. However, after such a move it seems hazardous to open new bullish positions here.
Tomorrow is Friday and after one of the best weeks this stock market has seen in months I think there is a good chance that stocks might see some profit taking before the closing bell on Friday. I would rather wait and see where things settle before considering new positions. Therefore we are not publishing any new trades tonight.