Firstly, I want to apologize for missing trading this morning. I am returning to Dubai to take care of some work and should be back and trading soon. I had an incredible time visiting some of our traders in Zürich, Switzerland. It is amazing to me the depth of this community and the diversity of traders we have all around the world.
At the same time, Brian has given up on trading and is now in Vietnam. Rumor has it he is working 12 hours a day looking for Vietnamese gold!
The market continues to be volatile. It is a nightmare for investors but a paradise for traders who are ready and well equipped to take action. This morning, we saw a massive reversal and a squeeze which Thor beautifully called in the chatroom. John and Paras, our two senior traders, did their thing on TSLA and PDD, one based on Time and Sales, and one based on Break of High of Day.
If you have not been following what has been going on in the market, last Friday, the 16th largest bank in the US, Silicon Valley Bank, collapsed and had its assets seized by the FDIC. The problem was a simple mismanagement of interest rate risk on the bank side (which could have been easily hedged by derivatives). The response was a classic “bank run” and lots of venture capitalists on Twitter calling for a bailout, despite their portfolio companies getting up to an 80% recovery on their money. The Fed announced on Sunday, before the futures market opened, that it would provide liquidity for banks that require it in order to provide stability in the market.
I have often said that it is not the bottom until Bill Ackman cries on CNBC. Well, this weekend, Bill Ackman was crying on Twitter, asking for a bailout.
Make sure to have great risk management in place for these volatile days and protect your hard-earned money. What a time to be a trader! See you tomorrow in the chat.
To your success,
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Andrew Aziz (Ph.D.) is a Canadian trader, investor, proprietary fund manager, official Forbes business Council member, investor, and #1 best-selling author.