I am about ready to pull the trigger on a stock index trade. While here in the US we are yet to experience peak COVID-19 cases yet, new cases are now in decline in some of the worlds hottest spots such as China and Italy. The peak in the bond market is signaling that stocks have bottomed. I think we need to be thinking of how to enter the market with a long position of some sort, even if it is only with a micro-mini contract.
Here are some ideas on where I would like to see the stock indexes go tonight. I may put in an offer to buy one of these at these levels. Remember there are the micro emini contracts which are 20% the size of the normal emini.
The move in PA since early December was just ridiculous.....almost parabolic. PA trends well but its cycles end with a thud. It tends to give a steep drop lasting only 2-3 days before resuming higher. It usually becomes oversold on the 3 and 5 day RSI.
Ohhh, did I mention the margin required for a PA contract is now $28,600? It was only around $12,000 6 months ago.