March Madness - What Will the Trading Month of March Bring to Investors

As February comes to a close, investors are leery on how to approach their March trade. We have recently had key earnings reported in the stocks - Nvidia(NVDA) and Salesforce(CRM) saw two different results but the same outcome, a declining stock price. Nvidia earnings beat expectations, showing major growth in the company and a great outlook, but the stock price brushed the news off and saw $116 being tested. As for Salesforce, their results were disappointing and also saw a drop in stock price, challenging a $292 low. Many analysts adjusted and lowered their price target for Salesforce due to this recent data release.

So these results have investors asking, is all news bad news for the markets right now?

Trader’s reactions to the potential tariffs being put in place on March 4th by the US will set the tone for March’s market. These tariffs, if executed, will cause a potential decline in many sectors. US companies dependent on international trade will potentially see the biggest hit. 

Commodities will also feel the brunt of this move. Agriculture markets and energies could see the most movement. Trader’s who typically trade outright futures or stocks may want to adjust their approach to a longer-term trading style and consider buying options with many unknowns left to consider this year. 

Disclaimer: Past performance is not indicative of future returns. Opinions are my own. Profitable trades are not guaranteed.