September Roller Coaster Gives Way To Fourth Quarter

2020-09-30

The last day of the month started out on a mad rush to the upside before ducking and curling to trim gains through the afternoon and into the close.

September continued its roller coaster ride all the way to the end before giving way to the last quarter of a wild 2020.

The Dow was up more than 500 points early in the day before trimming almost 300 points off the session highs, and then rallying. The Nasdaq and S&P 500 managed to creep out of September with modest gains on the day.

The Dow closed at 27,781.70 points to gain 1.2% (up 329.04 points on the day). The Nasdaq rose to 11,167.51 points for a .74% uptick while the S&P 500 added .83% to 27.53 points.

Every little news ticker — stimulus, earnings, debate, Covid-19 — seems to be tweaking twitchy investors.

Simpler’s traders are watching these emotional twists like hawks circling a field mouse. Little do they expect that their emotional reactions to the market can open up moves for a tasty profit for savvy traders.

As the market works through the psychological triggers, Simpler’s traders are working setups with an expectation of a rally followed by yet another pullback.

Trading with plans of following key sectors, managing risk, and going to cash when in doubt.

Sound familiar?

Time will tell whether or not October is déjà vu compared to September.

We Saw: Rough month ending with positive day — 

  • All three indexes down again
  • Rally into next week and rollover?
  • Twitchy traders setting up profit points

We’re Watching: Setups for more active October —

  • A little time to catch a breath if needed
  • Rally into next week and rollover?
  • Setups in: PTON, CRM, BIGC, MU, TDOC

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