August Closes Strong… ‘80s Flashback?

2020-08-31

Monday’s stock market session left traders scratching their heads by the end of the day.

Apple and Tesla stock splits took off in feverish trading that sent their prices higher from the outset.

In contrast, the Dow was down most of the day and closed in the red at 28,430.05 (a .78% loss).

The Nasdaq was up .68% to 11,75.46 while the S&P was near flat at 3,500.31 (down just .22%).

Despite mixed results in the indexes it was the strongest August for the Dow and S&P since 1984 (year of first Apple Macintosh TV commercial) and 1986 (year Halley’s comet rocketed overhead), respectively.

The overall continued bullish breakout doesn’t appear to be losing steam, especially since this is the fastest market recovery (pandemic crash in March) in history. The market has essentially rebalanced to where it was to start the year.

Our crystal ball is in the shop indefinitely, so we’ll stick to fundamentals, charts, and proven indicators to ride this bull run for all it’s worth.

The spring and summer have been a wild ride and we’ve capitalized on a lot of winning moves (i.e. John Carter, founder of Simpler Trading, with now five separate 7-figure trades since the pandemic started).

Simpler’s traders expect the opportunities to continue as this bull runs. The only concern is an anticipated pullback at some point in an extended market. How soon and how sharp of a gap will be determined by the market when it’s ready.

With so many trade setups appearing in this wild market and so many traders “chasing” moves, traders would do well to enjoy feeling accomplished in the setups they miss. Make sure all signals and trading plan requirements line up before jumping into the fray.

Everyone is at a different stage of the journey, so it’s important to follow the basic, important functions of trading in this trading market. Remember to always position size with only what you’re willing to lose.

This bull could really run away from you.

We Saw: mixed market to close the month — 

  • Best August in decades for Dow, S&P
  • China bowing up to U.S. economic pressure
  • Congress unable to find a stimulus plan with both hands

We’re Watching: for the market to continue bullish —

  • First day of September jitters that could trip the bull
  • How to play the hot stock splits of AAPL and TSLA
  • Setups in: AMZN, SHOP, ZM, SWKS

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