We have seen the market recover from the COVID-19 lows set back in March. Fears over what the pandemic would do to the overall economy. When you shut down the largest economy in the world there are going to be ramifications. Those will be immediately felt by those who are most vulnerable. Nothing should be a surprise, yet many feel surprised with the fallout from this most recent pandemic. We have witnessed pandemics before and will certainly overcome this one too. The question to you is whether you are prepared for what the market has in store for us? Do you have a plan to execute? This will be key to win the next 3-6 months and beyond.

Taking a quick peak at sentiment we do see the number of Bulls growing in the AAII survey. The number of bullish respondents climb 2.4 percentage points to 36.6%. Neutral respondents rose 2.7% to 18.7%. Bears dropped 5.1 points to 44.7. The crowd is certainly mixed at this point and it isn’t a stretch logically. Let’s keep our focus on what we can control: our actions. Get your trading plan right and risk in check.

There are stocks forming bases right now even ones hit hard are rounding bottoming patterns. While a good sign this doesn’t guarantee we are going to push higher. If there were guarantees trading would be simple and everyone would do it. Since this is not the case, we need a sound trading plan to execute. Know your position size and exit before the trade is even entered. Be measured in your approach and remove emotion from your trading equation.

Control what is in your possession to control. Emotions and controlling them is a huge key to success in the stock market. Emotions are Risk must be controlled in order to be successful.