[Platinum Watchlist] (3.15.23)

Good morning  

Broader equity markets fell sharply, reversing earlier gains, as Credit Suisse’s drop by as much as 24% re-ignited some of the jitters among investors about the resilience of the global banking system after the collapse of Silicon Valley Bank. Credit Suisse dropped to a new record low after its largest investor said it could not provide the Swiss bank with more financial assistance.  

My trading guidelines have had us out of the market since last week. Swing trading set-ups with a probability of success were just not presenting themselves. 

We want the market to work for us and not the other way around. The only real set-ups were GLD and SLV that were placed on the watchlist prior to market open on Monday because they had a one candle close above the 9-day SMA.  

On Monday, GLD and SLV gapped up. Although they closed down slightly yesterday as the broader market trended up, it looks as if they will have more room to run this morning. 

At least for the moment, my trading guidelines have correctly identified these two positions while keeping us out of specific securities. If you have initiated positions in either of these entities, make sure you utilize stop limit orders to prevent downside losses as commodities are very volatile with large price action swings.  As discussed before, one of the hardest things about swing trading is practicing patience.

 It’s hard to trust your guidelines when markets go up like we saw yesterday. If we can remain disciplined and follow our trading plan, more times than not, we will find ourselves on the right side of the trade. 

Money flows where the value is and at the moment, Cash is King, and T-bills seem to be the safest place for that cash at the present time. Swing trading is about preserving wealth which is what we are doing this week.  

This information is for educational purposes and is not a recommendation to buy or sell a security.