Gutting It Out Through Market ‘Retreat’

2021-01-22

When the market retreats against the bulls, what’s the plan?

Follow the long-term plan and work through the gut checks.

This requires a daily heightened sense of awareness in a market environment on edge and fueled by uncertainty and volatility.

This environment will test traders’ intestinal fortitude, especially with sessions like Friday where the market fell sharply to open and then sputtered its way back to trim losses through midday and into the close.

The Dow closed at 30,996.98 points to fall .57% (dropping 179.03 points on the day). The Nasdaq was the lone positive of the three major indexes, closing at 13,543.06 for a .09% gain. The S&P 500 dipped .30% to 3,841.47 points.

Those who held through the pain of the pullback can reevaluate how bullish positions might profit while those who panicked on a Friday can seek solace over the weekend. (Simpler’s traders often say, “Don’t lose your arse on a Friday.”)

For now the goal is to stay on target for the long term, focus on a few favorite picks, and keep an eye on compression squeezes that trigger to the upside. Taking available profits and moving on is a daily objective.

Simpler’s traders are listening to their own intuition and following their personalized trading plans.

We Saw: A churning, choppy overall market — 

  • Nasdaq, Big Tech leading the positive side of the session
  • Dow, S&P 500 not finding good footing on a Friday
  • Another stimulus delay playing with the economy

We’re Watching: Compression in a ‘quiet’ market —

  • Holding strong positions into the weekend
  • Small wins that play big into the bottom line
  • Setups in: HD, ITB, PINS, PTON, PLTR, DIS