Profit Potential In Season Of Change

2021-01-20

Isn’t everyone taking profits as this market climbs to record highs?

The new U.S. administration inauguration ushered in a season of change and the market responded by maintaining the current uptrend.

Today the market is enjoying a continued rally, optimism is at all-time high, and there have been few hiccups so far this year. The new administration has promised more economic stimulus, forbearance of student loans, and to maintain an eviction moratorium along with a laundry list of changes. The Fed is holding to previous actions to bolster the economy and stock market as much as it can.

Will this new season of politics and policy be met with a seasonal trend in the market that tends to douse a fiery market on the rise?

Market history shows that when these conditions continue it is the season when a reversal can take place.

Simpler’s traders maintain their bullish positions, taking profits in a market moving steadily toward higher highs. Expectations are that the popular and highly-valued Big Tech arena will continue churning up the charts as tech tickers sail higher toward earnings reports. At the same time, Simpler’s traders are keeping an eye on the often overlooked “blah” movement in key sectors, such as materials and consumer goods.

The pockets of strength in this ongoing rally are the focus for potential profits while traders are watching the flip side of the big picture with a paranoid inkling about a potential flush.

What’s going on with the market? What’s the next good play?

What happens now… today? 

These questions guide the goal of grinding out an established plan for daily and weekly gains.

We’ll let the market dictate the season while working toward a profitable account balance at the end of the year.

We Saw: A changing of the guard in U.S. politics — 

  • Big promises for increased economic stimulus
  • Another day of record highs across the board
  • As we’ve said, video streaming services growing, profitable

We’re Watching: For upside profits with an eye on the downside —

  • We survive from the grind that binds us
  • Are we overdue for a correction?
  • Setups in: PINS, TSLA, DIS, RUT, WBA