This Market Dance Keeps Traders On Their Toes

2021-10-06

The overall market is in flux after spiking down, rallying to recover, and today… back to flat.

When the market isn’t holding a steady trend, knowing key strategies to stay afloat — and target profits — is essential through this wild and choppy ride.

The best strategy to use in this environment can be difficult to pin down. Simpler’s traders, who anticipate this see-saw dance will be relatively brief, are adapting their tools and skill sets. While no one knows where the market is going, our traders know it feels like déjà vu all over again — eerily similar to earlier this year when the markets were all over the place and difficult to find a rhythm trading.

When Simpler’s traders aren’t able to determine the best strategy for the current market, the focus turns to finding workable solutions from a variety of sources. And, most importantly, we avoid strategies that don’t work and kick losing trades to the curb quickly.

Following the ranges within the indices offers a point from where traders can establish trading boundaries. Following the S&P 500, Nasdaq, and Dow provides an opportunity to establish the overall direction of a sector or an asset. This can help identify areas of support and resistance while establishing setups designed to catch reliable trends and big moves.

Will prices go to lower lows? Or are they just taking a momentum break with the mostly flat close today? Following the indices is where we’re looking to find opportunities to turn tricky transitions into possible trades.

Is this market heading into a distribution, signaling the end of an uptrend as selling overtakes buying? Or are we facing a true market correction?

However this market dance plays out, Simpler’s traders are always working to improve their backup plan that can adapt to market conditions.

Our traders lean into charts, signals, and patterns to determine their next move — and the rhythm of this wild market keeps us on our toes.