More Market Opportunities On The Horizon?

2020-11-16

Was Monday the “moment in time” that traders missed as the markets surged beyond expectations?

The Dow hit a record close at 29,950.44 points to jump 1.60% (adding 470.63 points). The Nasdaq rallied to 11,924.13 points for a .80% rise while the S&P 500 grew 1.16% to 3,626.91 points (also a record high).

The indices continue to rise further above the March pandemic lows and key sectors are recovering or continuing to excel.

The rise across the market hasn’t been a clear run the past few months. At times the market has gapped down and the bullish direction hasn’t settled in enough to tamp down choppy conditions.

Simpler’s traders continue with wary expectations as they wait for clearer setups before taking trades. Some tickers, particular tech and “pandemic” stocks, haven’t been as consistent as they were just a few weeks ago. An updated watch list allows traders to continue following these tickers until, or if, they return to favorable setups.

Important in searching for the next “moment in time” is following a trading plan that doesn’t jump on news — good or bad — even if the good news signals a Covid-19 vaccine on the near horizon.

As Simpler’s traders have noted, a jump on Monday can easily turn into a crush on Tuesday.

This leads us to be cautious despite the spike in today’s session that comes from a news event that could change with the next cycle.

As the market plows forward other opportunities will develop. Simpler’s traders focus on staying attentive and patient until setups that align with their trading plans arise.

If you’re not getting paid to take undue risks, doesn’t it make sense to avoid trades that don’t fit your plan?

We’ll continue to stay comfortable in our trading plans, which means we don’t have to be involved in every move the market may present.

Even if the market is influenced by news of a potential life-changing vaccine.

We Saw: record-setting market conditions — 

  • Sooner than later news of Covid-19 vaccine
  • Traders sticking to buying plans
  • Limited time window for economic stimulus

We’re Watching: Whether Dow, S&P continue record-setting pace —

  • Sectors gaining, presenting bullish setups
  • Fed working in background of bullish trend
  • Effects on market of new, harsh Covid-19 restrictions