SPY began the week just below 281 after a strong run upward in the pre-market trading on news of progress from the US-China trade negotiations and confirmation from President Trump that the increased tariffs on Chinese imports will not come into effect on March 2 as planned. Some gains were made in the morning, but profit taking characterized the afternoon.
On Tuesday the US markets climbed on confidence that US economic policy would be stable as Federal Reserve Chairman Powell testified before the Senate Banking Committee in Washington. Investors took this as good news and kept SPY afloat despite losses in the healthcare and industrial sectors. Traders hit the sell button in the afternoon and again took their profits to end off the day.
Wednesday began with nervousness and a sharp decline Michael Cohen’s testimony painted a grim picture about the President. Those losses were gradually erased through the afternoon and the bulls remained strong to finish off the day.
To contrast with the larger moves earlier in the week, Thursday was a relatively flat trading day. An economic report released in the morning warned of a slowing economy and sent SPY slightly downward. That decline was not sustained, however, as SPY found strong support at the pivot and remained above that level for most of the day.
A strong upward climb in the pre-market trading encouraged many trades entering Friday. During the Trading Room, many reported double-digit returns as their sell orders were fulfilled as the opening bell rang. I personally made 28.2% on some calls I had bought the day before. Congratulations to all those who made some great money! SPY closed off the week on a high note.