The Dow rebounded over 500 points intraday but do not expect a continued vertical rally. Volume was light but there were no sellers. The gains were steady all day until just before the close when a little profit taking appeared. Post crash rebounds with V bottoms are extremely rare. However, the markets went from extremely overbought to extremely oversold in only 11 days on high volume. Maybe, this will be one of those times where buyers rush into the dip since it had been months since we had seen a real dip.
I am not putting any stop losses on our positions. With volatility still high and triple digit intraday moves that is just an opportunity to be stopped at the lows for the day. These are April positions or longer and the volatility should not last more than 2-3 more weeks. When a final rebound appears it could be very strong.
Stop Loss Updates
Check the graphic below for any new stop losses in bright yellow.
We need to always be prepared for an unexpected decline.
Check the graphic below for any profit stops in green.
We need to always be prepared for a profit exit at resistance.
Current Position Changes
TGT - Target
The long call position was entered at the open.
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