The market trading action returned to normal on 4/20. What does normal mean? Well the level of buying and selling is within historical norms. So for one day it seemed like the markets had stabilized. Then the price of oil dropped below zero due to over supply and dwindling storage, causing the SP500 to step back into the heavy selling range. Surprisingly the other indexes did not follow suit, which could lead credence to the theory of the V shaped recovery (~2 weeks left!).
Some in the media think this current up trend is a dead-cat-bounce / bear-trap. It’s not. In a few weeks I’ll explain why it’s not, and how you can spot one. Of course not being a dead cat bounce doesn’t mean our recovery won’t be a W instead of a V. If the oil market continues to fall we could see the collapse of the US oil industry. If that were to happen we would definitely see new lows on all of the indexes.
In light of this you should still trade with caution.
Quant For The Masses 