Avoid Any ‘Teflon’ Tests To Your Account

2021-02-09

Is the market readying for another stellar rally even as the major indexes eased off the quickened pace?

The Nasdaq topped a new record, but did this with only a .14% gain on the day. The Nasdaq closed at 14,007.70. The Dow slipped to 31,375.83 points to ease back .03% (dropping just 9.93 points on the day). The S&P 500 slipped slightly to fall .11% to 3,911.23 points.

The pullback may lead into another run in a market that has been like Teflon for months. Nothing negative seems to stick around, just slides away into the dust left by the market.

With this new movement, Simpler’s traders are “cautiously risky” with high-probability setups and plays in tickers heading into earnings. They also have an eye on any new Fed discussions.

Pursuing setups in this environment is a matter of “trading the chart in front of you.” The squeeze is king for managing risk in a market that can turn a solid play into a slippery adventure.

Keeping position sizing in check is also important with current market patterns. No need to dig deep into account balances when steady gains can keep a sound trading plan in play.

Simpler’s traders also look to take profits before any earnings run tapers off max profit. A run into earnings always ends, so why not take a high percentage of max profit and not risk a sudden loss?

Even closing a trade ahead of plans for a small profit is a strong play to protect capital. Simpler’s traders are always adjusting to trade in a way that is best for their account.

No need to test one’s own “Teflon” capabilities with a hard hit to the account.

We Saw: Overall market easing up on gas pedal — 

  • Nasdaq ekes out new high, Dow and S&P 500 slip back
  • Big move in gobbling up gaming companies
  • Big moves afoot in after hours trading

We’re Watching: Strength of market moves at Wednesday opening —

  • For “nice” plays and continued earnings setups
  • Patterns and plays with a bit of “give and take”
  • Setups in: CRWD, BLNK, TSLA, AMZN, GOOGL