Working Toward Potential Sunny Upside
Is the market setting up for a brighter, higher summertime run before settling under an overcast fall?
Reviewing early signals, markets are looking bullish heading into the final month of the second quarter. Summer months have proven historically to be a little choppy and sloppy. Simpler’s traders are eyeing smaller pullbacks with stronger performance across indexes and key sectors, at least to start the summer.
Not every asset class will come up sunny, but the market has hinted at presenting a brighter disposition, or is at least trying.
All three major indexes closed near flat today as early gains melted away in the heat of the session.
While the directional bias appears to be leaning to the upside, traders want to keep an eye on lagging performance in Big Tech, health care, and past “pandemic” darlings. Energy, travel, transportation, and retail are readying for a bubbling economy to counter the lagging sectors.
Squeezes are firing throughout the market — indexes, sectors, tickers — to the point there are a variety of setups for traders to follow.
Anything that looks good on the charts is worth pursuing to see if it fits an individual’s risk management and trading plan. When the bulls are running, why not ride a few runs to the upside whether these are home runs or modest gains?
Summer has always proven a good time to stretch for new opportunities, gain a little refresher, and get back into the swing of things.
Still, we’re always reminded that the markets will do what the markets want to do. While the current environment points toward the upside, we remain flexible in our execution and ready to adapt to whatever the markets reveal.
Here’s to searching for opportunistic potential with expectations of sunnier days ahead.
We Saw: Market struggling to push higher and brighter —
- Another major cyber attack on key supply chain
- Lazy summer? Labor shortages continue
- Energy, Dow bright spots in flat market
We’re Watching: Squeezes that lead to brighter potential —
- Keeping price, time on our side
- Our voodoo that is a “Magic Market Map” —free webinar
- Setups in: NDX, CAT, FCX