Nimble Trading Presents Path In Erratic Market

2021-03-25

Another day that started with heavy selling was followed by a choppy rebound of buying that left traders nervous heading into the final Friday of March.

Should traders be worried about this constant zig-zagging unpredictability?

Maintaining a proper perspective is important when navigating a constantly shifting market. Stepping back and taking a look at different time frames and more data can help get a new view of how market movement is shaking out daily.

This could lead traders to shorter time frames with trade setups that allow for quicker entries and exits without holding through all the slop and chop. The goal is to take smaller profits and avoid holding too long which could erase any series of smaller gains.

Another insight is that today’s market action could be considered “normal.” Historical data points to this rising trend as not being broken since last fall despite occasional pullbacks, some being significant.

Charts are showing Simpler’s traders that support has held overall and the expectation is low for any bearish freefall.

Simpler’s traders, with more than 200 years combined experience, aren’t seeing current market action as anything “scary.” The erratic nature of recent sessions can be unnerving, but in trading there is always a position to be found.

As with any cycle or phase in the market, the current up and down movement will play out in time.

As traders seek patterns and reasoning in this messy market, remember that “sitting on your hands” is a strategy and staying nimble in any trading plan is prudent in these erratic sessions.

We Saw: A big bounce back to end Thursday’s session — 

  • All three major indexes erase early losses to close positive
  • Stimulus checks hitting U.S. bank accounts
  • Growing questions about Big Tech influence, profits

We’re Watching: Signals of continued market strength —

  • Controlling risk and searching for “in and out” profits
  • Strong bounce today, not losing our arse on a Friday
  • Setups that keep us nimble, light, and less exposed