I haven’t bought into this rally at all.  

First of all, it is a crazy thing to go chasing these massive gaps higher. “Buy hundred point gaps higher”…Sure – no problem! 

I’ll pass. 

Now you have a potential pain trade, because a lot of shorts have probably been squeezed out of their positions. No doubt they are probably itching to get back in them, while the majority of traders are riding the “hopium” wave believing the bottom is in and they should get long now or miss out on a massive bull market rally. I can easily see a lot of traders getting trapped here because the FOMO was to great yesterday and today. Be careful you’re not one of them. 

First off, if there is a bottom in place (and nobody knows that!), there will be plenty of time to benefit from it. It isn’t going straight to all time highs from here. Better to wait for ideal trade setups that offer the kind of risk/reward that limits the former and expands upon the latter. When you have 100 point gaps higher, that won’t do it. 

There is a lot of unknowns to this market still, and to think that a couple of politicians can trigger the algos to buy with their flattened curve talk and that all will be well again, is a huge fallacy that the investors and traders and running on. In the end, you don’t just walk away from an economic shut down going on a month now, and maybe going on for another 1-2 months and think that everything will just bounce right back up and be trading at all time highs in no-time. 

Instead, there is going to be more sell-offs and more grinding out in this market here. Be ready for it.

Get all of my trades that I make real-time by jumping in the Trading Block and start making some profits for yourself! 

Here’s my watch-list of long setups I am following: