Contain Emotional Rush In Wild Market

2020-08-04 | Simpler Trading Team

While others are claiming the market makes no sense, Simpler’s traders are mining the abundance of opportunities.

The market can be an options trader’s playground — terrifying and amazing at the same time.

Monday’s fast gap up was followed by gains across the indexes today, and anything is possible midweek.

Squeeze signals across a variety of tickers indicate the market is still looking bullish.

The Nasdaq continues to add new all-time highs — Tuesday was the fifth day in a row with a record close. The index has steadily climbed since the pandemic-induced March lows. With the overall market following Nasdaq momentum, Simpler’s traders are focusing on the uptrend while it lasts.

Key signals in this momentum phase are the squeeze, stocks trading near the highs, and high-short interest leading into an earnings report.

Gaps up have been happening quickly and traders, of all skill levels, can miss the move. This could be a good time to follow the ticker and learn from the pattern, and not chase the trade late in the push toward new highs.

To boost account growth, traders can consider targeting more aggressive trades (within predetermined risk tolerance) to add opportunities to conservative plans.

The many opportunities in this market can create euphoria and lead to emotion-based decisions. Calm plays on setups help control risk, because the market is not going to go up forever.

Simpler’s traders are taking advantage of the twists and turns of this environment, knowing the market is not always like this.

So enjoy the ride, but don’t get overcome with euphoria.

We Saw: markets fighting to stay on the positive side — 

  • Gold looking golden on push to new highs
  • How just a few key stocks are keeping market up
  • See-saw battle over TikTok brewing?

We’re Watching: so many squeezes of opportunity —

  • Trade setups popping up across all sectors
  • Staying with the uptrend momentum for gains
  • Moves in: NFLX, ROKU, WMT 

Learn to target precise entries and exits with “divine” tools — take a look at chart analysis.