‘Boring’ Plays From Upside Moments In Time

2021-05-26

Trading “boring and safe” might be the “power play” message traders need to hear during this wild time of volatility.

Simpler’s traders are seeking tickers that have held steady and solid through this up-and-down environment. Expectations are for a cyclical rally in sectors that have held steady through months of market turmoil.

The plan is to walk cautiously forward with an eye for significant retracement to avoid a rally suddenly running out of steam.

In this market, Simpler’s traders are watching sectors — metals, bonds, high-value stocks (like tech), indexes — for signs of strength.

Watching doesn’t necessarily mean taking trades in these areas. This can simply be a way to look for strength as an indicator for potential trades in various assets with high-probability potential. Then, trade according to your individual plans and risk management.

Surprising to many traders, trends haven’t been hard to find in this market as long as traders don’t get stuck in “last year’s” thinking that Big Tech is the only narrative to follow.

Our traders are always looking for an edge in any market environment, and if one doesn’t present itself according to plan, then there is no trade to play.

Yet, within the steadier sectors and tickers, squeezes are showing up — revealing moments in time with a higher probability of a greater than expected move.

And there have been some “golden” revelations in recent market sessions.

For Simpler’s traders the goal, as always, is to take what the market gives — currently lots of volatility — and turn it into steady income. Check this out for a simple process that targets that goal.

We Saw: Choppy session forcing traders to work for setups — 

  • Retail traders rallying again to force plays in GME, AMC
  • Warnings stirring of bullish complacency
  • Bitcoin mining drawing ire of governments

We’re Watching: Squeezes revealing timely upside plays —

  • ‘Golden’ moments where charts set up nicely
  • Variety of assets with high-probability setups
  • Setups in: GOOGL, AAPL, AMZN, ABNB, FCX