I was a stock day trader. I've seen this pattern 100 times before. It's 2 p.m. eastern time this a temporary bottom. Look for a 50% retracement of the sell off. It will bounce back 500 points by close at 4 p.m. eastern. This is a tradable rally not long term investment. It's mostly fueled by short covering. It will continue to uptrend until Friday. There will be profit taking Friday afternoon before the close. Markets subject to crash at the blink of an eye. Do not leave your computer during your trading sesion. Set stop losses. The problem with stop losses is it could blow right through your stop loss share price with no buyers. This is referred to as a gap lower. You may have it to sell at $20 pre share and there will be no bids until it hits $15 so it automatically sells at $15. This is the easiest Market to make money long or short. But be careful and keep it short term. Try to time the bounces. Don't be greedy. Bulls make money Bears make money but pigs get slaughtered. There's a 1000-2000 point move to be had with little risk.
The markets are going to trade wild all week. Today had an intraday move of 900 points. You could trade the top and bottom of the market twice per day. The overall trend will be upward until Friday. Then profit taking will happen at the end of the day Friday markets will close higher for the week but may sell off from the high mark for the day.
I was right!!! It moved up 700 points from my bottom point. 3% profit in 2 hours not bad... You might see a sell off first thing in the morning 200-300 points or it will rally the whole day. It will end higher tomorrow. It will more than likely finish the week higher with profit-taking Friday. You sometimes see a fake out it will sell off from 3 until 3:30 and then rally violently until 4.
Sell at the close!!! Any negative news could send the market down strong so don't go home long...
