My Short Watch-List: For The Dead Cat Bounce

: Ryan Mallory; 31 March 2020

Despite horrible economic news, the market has held its recent gains.

If you wondered what it looks like to climb the "Wall of Worry", the stock market is doing exactly that right now, and doing an amazing job of it too. Because the world is staying home to fight a pandemic, the economy is paralyze - but the market continues to hold the rally off of last week's lows.

Current Long Watch-List Should the Rally Last

: Ryan Mallory; 30 March 2020

A lot of people think a bottom is in, I'm doubtful of that.

I don't trust this rally one bit and what is interesting is how closely it follows the narrative from October 2018. If that happens, we will ultimately chop around for some time, before eventually seeing the ultimate rug pull that takes the lows from last week out, followed by a lot more selling.

The Trading Block: April 1st

: Ryan Mallory; 27 March 2020

New Trade Setups Added

Long: ProShares Short S&P 500 ETF (SH) (sent intraday)

Ideal Entry: 27.58
Stop-loss Option: 27.01

Target: 33.19
Risk Rating: 5.0

Long: ProShares Short QQQ ETF (PSQ) (sent intraday)

Ideal Entry: 25.40
Stop-loss Option: 24.75

Target: 29.20
Risk Rating: 5.0

Trade Setups Triggered:

Long Setups: PSQ, SH, ADBE

Short Setups: None

Setups Waiting to Trigger:

Long Setups: None

Short Setups: None

Active Trades:

Long Setups: PSQ, SH

Short Setups: None

Trades/Setups Removed/Closed:

NT=Never Triggered, 1/2=Half position, 1/3=Third position

Long Setups: ADBE

Short Setups: None

Trade Notes:

Trading Notes: Possible that depending on how well today's weakness holds up that I'll add a little more short exposure to the portfolio today, but more than likely I am going to be sitting on my hands and let my existing positions do the work for me as both new trades were added late yesterday. I'll also look to possibly increase the stop-loss at some point today, depending on price action.