Banking Gains As Bull Market Keeps Running

2021-02-12

When do you peel off profits?

There are profitable moves happening during this phase of the market. Sometimes the run toward profits begins feeling a little too good.

It’s easy to get nervous about what’s next.

That nervousness may be a good time to peel off some profits or close the trade as a success and move on to the next one.

No rule says that every trade must be allowed to run all the way to maximum profit. And its prudent not to assume the market will constantly grind higher, as recent pullbacks have shown. Simpler’s traders see the “greater trend” continuing bullish while not holding trades in play longer than needed.

This market has proven to shift quickly and can move against a position, taking it from profitable to costly.

Profits in hand can keep the account balance growing.

Transformative scenarios we’re watching include the dollar and entertainment.

Financial institutions and companies laden with cash (such as Big Tech) are diversifying outside the dollar — exchanging cash into cryptocurrency. Watching how this plays out in that space.

Some entertainment companies have been forced to diversify operations. Disney moved quickly into digital entertainment streaming services as the pandemic wiped out operations in cruises, theme parks, and movie theaters. This compressed business model kept the company profitable.

We’ll keep watching for these types of changes in the market and how to take profits along the way.

We Saw: Market flat to struggling on the day — 

  • Nasdaq and S&P 500 barely move while Dow slips again
  • Indexes flip today compared to yesterday’s close
  • Finalizing economic stimulus gains traction

We’re Watching: Transformative market influences —

  • How much bite of bitcoin can retail traders get?
  • Oil on the rise as energy sector takes political hits
  • Setups in: NDX, ABNB, CRWD, DIS, ROKU