Trading Into The Second Half Of The Year

2020-07-02 | Simpler Trading Team

The rising pandemic pattern appears to show that markets will surge on any positive economic news while rebuffing news of pandemic escalations.

Last week reports of greater than expected jobs increases and interest in companies with connections to economic reopening fueled an uptick heading into the holiday. This despite news of massive increases in U.S. Covid-19 cases.

This ongoing contradiction of “good news/bad news” continues as we head into the final weeks of summer.

What does this reveal for the second half of the year?

That may be answered by looking back into what has happened due to the pandemic.

There are companies tied to the economic reopening that are benefiting from the economic rejuvenation or that are mostly insulated from pandemic effects. These are tickers to consider as we gear up for the rest of the year.

One of the forward-leaning sectors to consider during this fast-action bullish momentum is cyber security stocks.

These have shown a steady rebound since the March lows when the Covid-19 pandemic tanked the market. Cyber security stocks have continued in a bullish trend with regular squeeze signals and pullbacks that open up opportunities to tap into the trend for profits.

The upside to these tickers is strong as the economy recovers. Watching for challenges to and breakthroughs of highs as markets continue to rally.

Knowing about these types of account-building opportunities gives traders an edge when navigating the constantly twisting pandemic-affected stock market.

As we go forward, we like being heavy in cash with the trading account, and staying ready for any mad dash through the end of the year.

We Saw: economies desperate to reopen, get going — 

  • Disheartening Covid-19 case increases
  • Questions if job growth continues with renewed lockdowns
  • Key sectors hanging onto a bullish trend

We’re Watching: for opportunities to finish the summer —

  • Semiconductor stocks looking historically bearish
  • Signals of possible S&P dip
  • Internal indicators of a possible shift

Can you make gains with “boring” trades in a volatile market? Find low-risk trades in any market HERE.