Given that the market has been oversold last week, this week would most likely be a relief rally. Sell off has ceased to move further. We’re seeing a bounce made by opportunists but investors might just be waiting for the market to reach some level before they continue selling.
COVID-19 issue will remain at focus. Global growth is affected. No one in their right frame of mind would be willing to put their money to sleep in the market.
With fear at the sidelines, equities bounced of key support levels. JPY fell.
Oil made a comeback on a new rumour circulating that OPEC might just push for 1.2M bpd (barrels per day) instead of 1M. Plus the announcement of Russia willing to cooperate (reluctantly) with OPEC. This might cause a rally back to 60.00 by March 5-6.
An experienced trader at this point would try to make some money out of this relief rally. But for position traders, they are better off waiting for a sell/short opportunity. Investors should wait for a few more months before their opportunity unfolds.