New Month: Be Light, Ready For Action
2020-08-03 | Simpler Trading Team
Underneath the constant current of “world is ending” news, the stock market rallied higher to begin the new month of trading.
The Dow closed at 26,664.40 points, up .89% (gaining 236.08 points on the day). The Nasdaq jumped to 10,916.34 points (a new high on the year) for a 1.59% spike while the S&P 500 popped .82% to 3,298.10 points.
Strong gains in tech sector tickers boosted the trading session.
Despite the fast-moving rally, Simpler’s traders weren’t stepping outside their comfort zone to jump into the action.
The plan with any trades on the books was to run with the rally and take profits on the way up.
Internal indicators suggested a continuation of the bullish trend.
The current trend could pop for explosive setups, so we’re watching for opportunities to make money off the bullish momentum.
When thinking of profits, a setup that hits 80 percent of the goal and allows you to take gains early can be a strong trading plan.
This can create a game plan to stay “light and ready for action.”
We Saw: markets rallying higher to start the month —
- Tech sector spurring rise across the indexes
- Nasdaq hitting new high on year, just shy of 11,000 mark
- Spurt in U.S. manufacturing activity
We’re Watching: how to play the rally and profit on the trend —
- For “lotto” setups with various earnings reports ahead
- Taking early gains ahead of goals for certain profits
- Moves in: MSFT, AAPL, SHOP, TSLA,
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