S&P 500 ready to give back all gains

As we come to the close of a hectic quarter, traders are still trying to put the pieces of the puzzle together to gear up for the second quarter of 2020. For the most part, it’s been pure chaos — as the coronavirus pandemic continues to damage the global economy.

Well, at one point, the S&P 500 (SPY) was down 35% from its high… and the velocity of the move was unprecedented. If you just take a look at the heatmap for stocks (for Q1 2020), from Finviz, you can see there are very few stocks that are up.


Though the VIX has risen this morning it is down into the mid-50s which is low in comparison. So though the moving averages are pointing down, the same thing was happening on Friday and it was bought up. I think ultimately we could drift lower toward the end of the day.

Two important things to continue to keep in mind. Volatility will make the price options expensive and may whip the price around to places that may be beyond your risk tolerance. You have to trade what is right for you. As a reminder, I encourage you, if you do jump in, manage your stop loss according to your tolerance.