Bulls Run Like Wind Behind Them

2021-11-09

Sky-high entry points have Simpler’s traders constructing well-researched plans in the middle of this wild market run.

The market has been making aggressively vertical moves and tossing out hints of further breakout — potentially through the end of the year.

The market has been lurching ahead with a tailwind at its back, with no fear of a headwind.

Sectors, right on cue, churned right along with the market. Industrials, energy, and technology sectors all have had a case of “Hey, watch this!” as of late.

Until Tuesday.

This is why Simpler’s traders have been exercising caution.

This pullback is sudden, and its severity is yet to be seen.

Simpler’s traders, who do not like to get caught looking a gift horse in the mouth, have been cautious of what has powered recent bullishness. They continue to focus on simple market strategies that assist their maneuvering through this “bull mania.”

An extended run (like this current one that may bounce back tomorrow), with little natural support, leaves traders scouting their options to stay in the market. Continuing on with the “norm” with swing trade entries may still be attainable, although risky. Sitting this out while determining the degree of this pullback is also an executable trade strategy.

Simpler’s traders scale in their time frames to find simple day trading strategies that work best in an extended market — and enable them to reduce risk. Traders can also scale in charts to tighter time frames to avoid unnecessary overnight and end-of-day risks.

What this means is that two things could happen given the technical signals on the charts. The market could continue its climb through the end of the year when historically it does tend to weaken. Or, the final wave of the bull market with its impulsive vertical moves higher could be underway and continue into next year.

The question on Simpler’s traders’ minds is where do they want to buy in an extended, yet still bullish, market?