Is ‘Buy, Buy’ Market A Sugar High?


Simpler Trading Team

2 min read

Market indexes continue to grind higher and surge past previous all-time highs with expectations this is a regular occurrence for the near future.

The Nasdaq rallied for the seventh day in a row to eclipse the 11,000 mark. The tech-fueled index closed at 11,104.80, up .97%.

The Dow spiked 185 points to gain .68% and close at 27,386.98 points while the S&P rounded out the indexes with a .61% gain to mark 3,348.01 points.

This Fed-induced, high-liquidity market fueled high expectations as it stayed on a bullish path heading into the close of the week. Traders are awaiting market influence from the non-farm payrolls announcement Friday and an expected U.S. stimulus agreement.

Simpler’s traders are eyeing the S&P 500 as a signal for continuation of this ongoing rally. Reaching 3400 as an all-time high could be one daily spike away and the index could run right through that level and beyond.

Until some sort of catalyst causes a bearish turn, current internal signals continue to support the market rising higher.

The caution is not knowing whether this extended rally is a “buy more” sugar high that could crash when the realization sets in that this could be an overextended market.

Barring any sudden negative catalyst, the play remains to stay bullish and not fight the trend. Shorting this run up could be risky.

A common strategy among Simpler’s traders so far this year is taking fewer trades than prior years, yet earning more profits as they stay in line with the trend.

The plan continues: no need to be in on every trade, maintain mostly cash, and target only trades for profit.

We Saw: the Nasdaq break past the 11,000 mark – 

  • Tech-heavy Nasdaq hits its 32nd record day this year
  • Dow and S&P 500 each hit fifth straight positive day
  • Market poised to keep breaking records

We’re Watching: 

  • Which tech stocks to play for highest profits
  • Finding more tickers that continue on regardless of market direction
  • Setups in: AMAT, AAPL, FSLY