Bull Market Dies, Bear Market Rises

2020-03-12 | Simpler Trading Team

As the markets cratered, traders were fondly remembering the good old days of “watching the paint dry” during boring market sessions.

The Dow suffered its worst day in decades, down 2,352.60, while the S&P and Nasdaq wildly slammed head-on into a bear market.

Fear running rampant through the markets was as real as it gets. Moderators at Simpler Trading kept it simple — maintain cash and take only quick, opportunity trades.

After selling triggered a “circuit breaker” with a 7% drop at the open, the mad selling continued after the 15-minute pause. All indexes were down almost 10% by the end of the day.

Simpler’s moderators focused on specific indexes or stocks within the volatile markets to keep their trading plans in play.

Traders should be asking: “What are the moves from right here?”

Simpler’s moderators have found profitable trades in this market, like a 6% stock trade and a $1,300 gain on a 5-minute chart.

Follow internals and don’t let the news and market fears chase away your trading plan.

Maintaining a positive account balance is the main goal.

We Saw: historic catering of all indexes — 

  • The bear market has reared its head
  • The bull market is officially dead
  • Signals it’s not over

We’re Watching: … for any opportunities the markets reveal —

  • The new “same old” preserve capital
  • Governments stepping in to catch the falling knife
  • … and double-checking charts and internals

Learn more about navigating news and the markets — check out the Simpler Trading community HERE.