Is Volatility Surge About To Hit Wall Street?

2020-06-04 | Simpler Trading Team

A market gone “bonkers” hit a bump midweek as it continues to baffle traders.

Is today’s tumble a sign to not chase “Wednesday’s strength?”

Or will the market regain its rally footing in a race to match all-time highs?

The prevailing longing for a recovery in the economy and a coronavirus vaccine (along with Fed-infused liquidity) continue to bolster the market.

There appears to be no end to “hope-ium” that keeps Wall Street out of touch with Main Street.

It’s a continuing disconnect from the reality of a flailing economy, chaotic social unrest, and increasing foreign trade tensions.

Seasoned traders expect something will happen that causes the market to flush.

Many are maintaining a “bullish bear” plan to play the market to the upside with an eye for a quick turn.

There is growing confidence that a surge of volatility is about to be released. Setups, like an iron condor that will benefit from a move either way, are in the works.

With this market, Friday might produce a bigger event than anyone expects.

We Saw: More job losses, more social unrest, more “hope-ium” — 

  • Key indexes stumbling after days of surging gains
  • Depressing unemployment rate pushing 20%
  • Big tech leaders in a spat over free speech

We’re Watching: … for bullish plays before a setback —

  • Airlines, travel stocks catching a bit of a tailwind
  • Most S&P sectors faltering in daily session
  • Action in: TSLA, CHGG, NFLX, PTON

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