Honey Badgers, Indexes Offer Trading Path

2021-08-23

Traders are facing a week of politics, stimulus money, earnings, and world events that could shape and shift this market in rapid fashion.

U.S. politicians are back in action planning trillions of dollars in economic stimulus money for years to come; big names in retail and technology report earnings this week; and the pandemic still rages while a renewed war may be brewing in the Middle East. And, by the way, the U.S. housing market teeters, according to some experts, on the verge of a “Black Swan” bubble burst.

Whether this market keeps grinding higher or rocks trading with a big drop remains to be seen. The market will dictate the outcome heading into September when the market is seasonally tough to trade, leaning to the downside.

Simpler’s traders are leaning into “go to” setups and strategies that can offer a “calming” trading plan for this type of choppy, uncertain environment.

“Honey badger” stocks — those that trend their own direction regardless of the market — are targets for Simpler’s traders. Identifying these types of stocks helps avoid the noise of news and events while targeting profit potential.

Last week the market was rocked across the board and this week began with a strong rebound in all three major indexes. This environment is difficult to predict movement and trends.

This is why our traders search out honey badger stocks, or stick to trading the indexes when stock prices are all over the board. Indexes have more liquidity and positions can be entered or exited more easily than getting stuck in a stock moving against a trade position.

Traders are encouraged to trade what is working in this environment, pursuing honey badger stocks that offer more stability, and don’t get into anything dicey.

We Saw: Market jumps higher to open new week —

  • S&P 500, Nasdaq hit new highs, Dow spikes 300 points
  • Bitcoin rallies to lead cryptocurrency higher
  • Warnings of housing ‘Black Swan’

We’re Watching: Fed, earnings, honey badgers, indexes —

  • Congress’ moves with trillions more in stimulus dollars
  • FDA approval of vaccines, economic implications
  • Setups showing taper-tolerant tickers (honey badgers?)