Gap Down Before Market Rally In New Year?
Gap Down Before Market Rally In New Year?December 10, 2020
Remaining days of the holiday season may be “cheery and bright,” but what’s left of the trading year continues to be dicey with a fog of uncertainty.
This market’s whipsaw nature — rip up, back off, repeat — has traders adjusting strategies and trading plans. Simpler’s traders have leaned overall bullish, but that doesn’t mean they aren’t stepping off the gas a bit into the end of the year.
Trading in 2020 has seen historic changes across the globe and in most areas of life. This year has also delivered significant gains for traders who have adjusted to extremely volatile market conditions.
With limited trading days left in 2020, there’s no reason to chase trades that might reverse significant gains to this point.
The market remains dicey and immediate plans include trading light and taking profits when available.
There’s a general sense signals are indicating that this current rally is weakening, yet the overall outlook into 2021 is for a strengthening economy and a robust market.
Since this year is closing fast, Simpler’s traders are maintaining what they have while adding limited risk that allows for “easy in, easy out” setups. They’re looking ahead to opportunities into next quarter, including earnings and economic growth.
The New Year is buzzing with potential, and it ’tis the season to hold onto capital and plan for what lies ahead.
We Saw: Choppy day in a dicey market—
- Pandemic responses taking toll on small business
- Travel bookings devastated, Airbnb IPO explodes
- Unemployment numbers higher, stimulus nowhere in sight
We’re Watching: Final days of trading in 2020 —
- Taking quick gains and keeping what we’ve tallied
- Elevator down into holidays, escalator up into New Year?
- Setups in: LULU, NKE, PTON, PINS