Lately the market has seen a strong rotation from momentum technology stocks to small cap, value stocks. We haven’t seen this dynamic in such a lasting way in at least ten years, so what’s going on? What is making small caps more attractive to traders in the current environment than the megacap tech stocks which … Read more
As the market has continued its bullish trend over the last few months, we’ve seen many stocks benefit from this momentum, making impressive moves alongside the indexes. While $MSFT, $GOOGL, and (at times) $AAPL have all seen strength in recent months, there are two tech-giants who have continued to trade sideways: $AMZN and $FB. While … Read more
Don’t worry we aren’t going to talk about GamesStop (GME), I just need to get that out of the way just in case you were curious, it’s over – get over it. But guess what! I have my eye on so much more that could be just as shocking and exciting. I’m talking about more … Read more
Hey Market Pilots, February is typically a weak month, and while that sounds like no fun or detrimental to our accounts, we should keep a few things in mind when contextualizing it. While the second half of 2020 and the beginning of 2021 have been extremely strong, we can’t expect our accounts—or the market—to go … Read more
We’re going to keep this post short and sweet. The only setup in the entire crypto market that still has a weekly squeeze in play is ETH/BTC. What does this mean? ETH/BTC is the ratio of Ethereum (the largest alternative coin) to Bitcoin. What does that mean? Think of it like silver and gold. Typically, … Read more
2020 was a crazy year for the market. We saw the most dramatic monthly range that SPX has ever seen. We saw choppiness as the market was unsure which way it would continue to head during the pandemic year. Then we saw a strong recovery bringing us back to new all time highs. Moves that … Read more
If you’ve been watching the Voodoo Lines, you might have noticed that several major indices are approaching their upper firelines. This includes the S&P 500 closing in on 3,876.63, the NASDAQ 100 approaching 13,764.20, even the S&P 100 near 1,763.65. Over in Europe, the Euro Stoxx 50 futures are also approaching a Voodoo fireline at … Read more
So after the first and second week of November 2020, we got to see the first sample of how a market can very quickly change personalities. Not only did it grab my attention, but it was my first two consecutive weeks of very little profits. It’s a testament to the importance of never over positioning, … Read more
Hey Market Pilots, The indexes have been a little difficult to read and interpret over the last few weeks. I chalk this up to back-to-back four day holiday weeks where traders are on vacation and volume is reduced, plus end of year shenanigans due to tax concerns. I wrote a newsletter the other week describing … Read more
We have looked at Bitcoin for some time at Simpler Trading, both in the rooms and individually. This year has seen Bitcoin and crypto again in the spotlight. We are seeing crypto gain attention for two reasons. The first is the continuing and never-ending money printing by central banks diluting the purchasing power of fiat … Read more