In an attempt to make light of a serious issue, I never did like lime with my Corona beer, I never quite saw the attraction. On a more serious note, my heart goes out to those that are suffering bad health as a result of this terrible epidemic. The markets are suffering too, and no doubt is the mental health of many investors. Reaching for too many beers is not a solid strategy.
The markets had been on a tear. When that happens traders get nervous and look for a reason to sell. They now have their reason. As always the best thing to do is take a step back and see what is happening, so I have posted the chart of the ASX200 below.
For some weeks now I have been concerned about a divergence between price and volume, (look at the green indicator above) I have been making these comments on my 52 week high page every weekend. However the medium term trend lines of price and volume have not broken down (yet). As I write this news letter the US markets are down and I suspect our market will touch those lower trend lines soon, maybe today (Wednesday 26th).
As difficult as it may be, the best strategy is to attempt to stay calm and look at the support that does exist at present. The chart above is a very strong one experiencing a normal pullback after a strong rise.
When trading a weekly system, at times it is very difficult to not pull the sell trigger mid week. My experience is that it is usually not the best option.
Take a breath and respond in a wise manner, do not just react.