Greer: Market Transparency Presents Opportunity For Traders

Your Real Vision Daily Briefing for May 5, 2020

Real Vision’s Ash Bennington and Tony Greer, editor of Morning Navigator, discuss recent market action.
  • Price action in the S&P is telling the story of what everybody is trying to accomplish, and Tony Greer said this transparency gives traders the opportunity to upsize their bets.
  • Greer named the technical levels he’s looking at as potential reversal points and said that 3030 is his ultimate top and 2700 is his number on the downside.
  • He said there are fascinating opportunities for short-term trading in the energy sector and that he’ll be watching energy, electricity, and utilities over the next several months.

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One of the great things about this market now is it’s as telegraphing as a market could possibly be; at 40 vol it is very hard to hide what you’re doing, Tony Greer, editor of Morning Navigator, told Real Vision’s Daily Briefing.

He said everything happening on the S&P is really transparent on the tape and that clarity gives traders a lot of opportunities to upsize their bets.

Greer also discussed resistance levels on the S&P and shared the technical levels he is looking at as potential reversal points. On the upside, Greer said 3030 is his ultimate top where he’d probably turn the boat short – but noted that at 40 volatility, it is still too a little too early to tell. He said 2700 is his reversal point on the downside.

He also named sectors that are starting to perform well. These include energy, which is pricing in a restart after taking in so much negative news, and construction, where there’s strong potential for a snapback in demand for new homes. He also said manufacturing, oil, and tech are coming back to life.

But the energy sector is where Greer said he is focusing a lot of his short-term trading, as volatility is creating an abundance of opportunity. In the longer term, he thinks investors will want electricity (in the sense of owning utilities) in their portfolio as he thinks that nationalization of energy is becoming more of a possibility.

Greer said he’ll be looking at the least leveraged, most highly capitalized companies like Exxon and Chevron.

“There could be a lot of opportunity in this, a lot of opportunity,” he said.