Mixed Market With Nasdaq Spiking To 10,000

2020-06-09 | Simpler Trading Team

A mixed up market today saw the Nasdaq spike to 10,000 for the first time while the Dow and S&P 500 slumped from yesterday’s roaring rally.

The Nasdaq spike settled into the close at 9,953.75 points for a .29% rise. The Dow closed at 27,272.30 points to fall 1.09% while the S&P 500 followed suit losing .78% at 3,207.18 points.

During these volatile cycles, caution pays off for Simpler’s traders. While leaning into bullish upside targets, expectations are that a reversal is lurking.

And plans were in place as the Dow took it on the chin today.

Simpler’s traders maintained plans guided by time-tested strategies and indicators. Setups followed the volatile market to identify trades no matter the market direction.

What are some ways to navigate a mixed up market that can crash or soar at any moment?

As the market jumps around:

  • Clearly define your risk-reward before taking any trade and stick to it
  • Focus on indicators, like the squeeze, designed to evaluate multiple signals for possible trade direction
  • Avoid getting comfortable — if the market is complacent it is a sign to watch for a sudden change
  • Watch for seasonal action in the market today that can offer insight into stock trends later in the summer
  • Curb enthusiasm, maintain patience, and follow the market’s lead to quality setups

The indexes held stable considering weak to bearish internals, so there remains a sentiment of being bullish with a chance of disaster.

Keep in mind, the Fed meets and speaks on Wednesday.

We Saw: Mixed index results with strong plays in individual stocks — 

  • Nasdaq touches 10,000 mark for first time
  • Dow ends rally streak at six days with sector leaders dropping
  • S&P 500 stumbles after turning positive for the year

We’re Watching: … bullish sentiment and setups continuing —

  • Key tech stocks supporting bullish trend
  • Squeezes any direction the volatility pushes
  • Setups in: ETSY, WORK, HTZ, AMZN, MSFT

Does it make sense to “see” price moves before they happen? Learn about catching “pops and drops” in a volatile market.