Market Boils, Toils During Weird Week

2020-10-29

For those who like stats, today is the 91st anniversary of “Black Tuesday” during the stock market crash of 1929 when market cap was ripped to pieces.

The crash is arguably the greatest wipeout of equity on the planet.

A little reflection on that moment fits a crazy week that created heavy losses in back-to-back selloffs, a recovering rally today, and a certain day to be cautious — Friday (Halloween eve, with a full moon brewing.)

As a note, even some honey badger stocks are doing all the “wrong” things.

A point to remember is that the markets are designed to take money from traders (and that’s OK, if you’re aware of it). Being aware means traders can “flow” in and out of opportunities (with a goal of winning more than losing)

This week has been a rough one for many traders, so what is a plan for a spooky market?

Times like this are worthy of stepping back and reviewing the market and your trading plan with a fresh set of eyes.

The market cycles all the time and always reverts back to the mean. This current market is an environment for opportunists willing to focus on short-term, day trades while getting back to flat overnight.

Simpler’s traders are cautious about positions as they wait for the market to settle down, possibly not until after the U.S. presidential election. They remain focused on the standard plan of keeping what they have — protecting capital and wiring out weekly percentages of profits.

Simplifying life — like enjoying the Halloween holiday — while going into cash for the weekend isn’t a bad trading plan.

We Saw: A refreshing rally — 

  • Big tech tickers leading the way
  • Huge GDP quarterly numbers
  • Weird week heading to a close

We’re Watching: Short-term opportunities —

  • Keeping a low profile as market churns
  • Enjoying the spooky weekend
  • Not rushing into anything on a Friday