Careful When ‘Taking The Bull By The Horns’

2021-01-28

When you slap the bull, the bull may run you over.

Retail traders who rallied in defiance against Wall Street power brokers experienced a harsh new day of trading on Thursday.

Rallying earlier in the week to buy up shorted stocks GME and AMC, these traders met up with huge funds that could quickly dial in virtually unlimited help to cover billions of dollars in losses. Then, the collective of retail traders was met with online trading platforms that could shut down continued retail buying pressure to “protect” against the volatility.

Who’s protecting whom?

That question will likely be debated ad nauseum as traders, investors, regulators, and politicians all pile into the trading world brouhaha of fair vs. unfair, legal vs. illegal, moral vs. immoral, big players vs. little players.

However this tussle tumbles, Simpler’s traders are asking a different question:

“What’s up next?”

We’ll keep looking for great looking setups that lead to promising probabilities no matter market volatility.

If sitting tight looks good, then sitting tight is the play.  Take profits, don’t chase, manage positions, and work toward consistent gains that move the account balance higher.

Does this sound familiar?

This is all part of keeping it “Simpler” while putting aside emotion and concentrating on sound analysis and execution of a trading plan.

When a bull is gathering a head of steam, it makes sense to step aside and let him rumble on by without stepping into any unnecessary risk.

We’ll let the “them vs. them” play out in the arena of this wild market while we focus on the “calm” away from the tussle. Whether it’s a bull or a bear, the market never stops moving and more opportunities will arise.

We Saw: Tumultuous tussle between traders, power players — 

  • “All stop” on GameStop, other tickers
  • Bite out of AAPL despite earnings
  • Robinhood not stealing from the rich anymore?

We’re Watching: Setups that avoid the bull run battle —

  • How far this rally runs
  • Avoiding a “keister kicking” on a Friday
  • Setups in PINS, PTON, TSLA, NVDA, NVAX