FOR MONDAY: (4/2) The long weekend can’t come soon enough for traders, as initial Tweets about hurting Amazon were taken back and techs soared 2% to erase losses. Trade was horribly thin on Thursday and may not mean much but finding places for new shorts on stocks is tricky.
Our experience with 3-day weekends is huge movement on Sunday night and early Monday, which is then faded with nowhere to go. We rarely have been able to sort out the head-fakes and double head-fakes from all the weekend political news and would find it safer to just wait for the market to settle down.
The week of the employment report is often very congestive, with a big range day on Monday and then a lot of consolidation, so the first week of the month is rather complicated to trade.
There‘s so much background noise going into the weekend and coming out of the weekend that it’s hard to imagine anything positive happening. What is clear is that stocks are going to break the first few weeks of April and we have to get short and survive the computer trading.
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