Crude Getting Ready for a Rude Move Up? with Nick Santiago (Ep. #13)

from Daily Market Wisdom with Nick Santiago

For more than 20 years, Master Trader Nick Santiago has been beating the markets. He’s made some incredible calls along the way and now he’s looking to spread the word. There’s no reason that the average trader should be coming up short. So now we’ve started a daily show to bring you up to date on the latest market developments. Nick will be sharing trades and concepts and discussing current trends. Today we discuss:

1. Earnings from the big banks have been weak. Today, Bank of America and Goldman Sachs reported earnings. Both are weak, but they have had big rallies recently. so this tells me that the stocks are just a sell the news event. I’ll be watching the financial stocks for possible bullish patterns over the next week or two. JP Morgan is down. Goldman flat. BOA down 6%. They’ve had pretty good runs recently. This is a sell the news event. These patterns could be setting up for an upside movement next week. Nick waits 3 days till after major announcements.

2. Crude is back below $20.00 a barrel. This is why it is important to watch for a pattern in the equity. I’d look to get into crude on a bullish pattern. It’s down 3 percent today. Waiting for signal to get back in. Lots of negative sentiment today. But the futures are telling a different story. Lots of small producers will be going under.

3. Options expiration is Friday for April. This is a week to be neutral in the market and to let the charts tell you what to do. Always pays to be on the sidelines. Volume trends in the S&P 500 have declined sharply since the mid-March panic. So if we decline on light volume it is usually setting up the market for another move higher.

4. Hotel stocks are playing out as Nick expected. Probably will be entering Hilton shortly. Risk is limited, reward very very high. It can be hard to do when the market could drop down 2000 points in a day.

5. Vix chart went from 12 to 85.47. Had a big rise from the start of the panic to March 18. It’s currently trading at 42. Vix has pulled back but Nick believes it’s on its way down to 30.

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