Will Bears Turn Tables On Bulls?

2021-10-12

The overall market is struggling to establish its identity, i.e. bearish or bullish.

All three major indices were down again Tuesday at the close.

Some sectors have made a clear path to a downward trend while some are still quite bullish.

Antsy traders ready to pull the trigger on trades face a high-contrast market that favors agility and quick-thinking moves. Finding your identity as a trader depends on tactical trades based on technical skills.

Simpler’s traders are strategizing moves based on the way indices and sectors are behaving through technical signals. Even in a market that seems to want to fall off a cliff at any given moment, uptrends in energy and financial markets are contrasting sharply with downtrends in defensives. And chop rages in virtually every other sector.

Most traders tend to appreciate a market trending in one direction. But, the chop is where traders can learn skills. Facing off against chop can force traders to understand which strategy to employ in different market types. So, understanding the different market sectors can help traders pursue profit opportunities in a market others might avoid.

Have the darling technology stocks finally hit a wall and met the criteria for a downtrend?

Even though these tickers and the technology-laden Nasdaq appear to be in a “dropzone,” there is still a lot of chop working within the drop. And, there is power in the chop that suggests caution.

Simpler’s traders are opting to strategize their trading plans based on technicals and signals in the indicators. They see where there are still bullish sectors in the mix.

By understanding that we apply different strategies to different market sectors, traders can prioritize movements — uptrends or downtrends. By focusing on the sectors, traders can strategize trades to their advantage.

Traders are encouraged to strategize judiciously by paying attention to technicals, key levels, and the overall structure of the market. Strategies based on gut feelings are faulty and cannot be measured.

Now is not the time to presume the bottom will drop out of the market.

But, as market history has proven, bears can turn the tables and make a run.