This Market Ain’t Pretty… But It Can Be Profitable

2021-09-30

One word that keeps coming up to describe recent market activity is “choppy.”

This environment is treacherous and volatile. And, that’s okay.

Simpler’s team of traders have decades of experience navigating rough market conditions. We’re following this market, which indicates an overall bullish trend, and breaking it down into digestible pieces. We are looking for ways to profit during this market limbo by playing both sides of the market.

Our strategy is simple, limit trade size and stay nimble. Setups that are “just okay” are not okay. We want well-defined setups that make a positive impact.

We have been watching the bond market closely and how folks in Washington acted like poker players to prevent a government shutdown. That could not only cause federal employee furloughs but could cause the U.S. government to leave Treasury obligations to bondholders unpaid — a disruption that could spill over to global markets.

Simpler’s traders are wading through this choppy volatility by being patient. There are some key elements to help us watch the direction the market is going.

Sector rotations can offer signals to where the market might be headed, despite the politics and news. As money in the market moves in and out of technology and small-cap sectors, momentum and volatility are part of the signals showing potential direction. We’re still exercising caution as we don’t want to be faked out by sudden dips that place us on the wrong side of the next market move.

With this much chop in the market, checking our positions and our time frames for opportunities remains the focus because this market seems to go in any direction at any time.