Market Acting Like An Itchy Teeter Totter
Market Acting Like An Itchy Teeter TotterJanuary 19, 2021
So much is at stake in the world the next few days that the stock market keeps struggling higher while traders’ nerves are jittery with anticipation and doubt.
Between an historic rally and a bubble bursting, the market teeters.
All three major indexes closed up to start the week. The Nasdaq blazed higher with a 1.53% gain. The Dow and S&P 500 were up .38% and .81%, respectively.
With the uptick, what’s making traders… itchy?
While the charts look good on the day, the “vitals” — key indicators watched by Simpler’s veteran traders — aren’t exhibiting strength or certainty. Key sectors are bland and overall the market isn’t sending clean, clear signals.
The market appears to be teetering equally between crumbling or racing higher.
While there are trades to be made in “honey badgers” — stocks that trend their own way despite market direction — Simpler’s traders have limited activity across the board. Waiting patiently and watching the market move through this phase has once again become a strong position.
The Simpler trading style is focused on a personalized stock watch list of tickers that fit within defined risk-reward goals. This focused list shies away from emotional temptations in the market while searching for tickers with profit potential.
We’ll continue to target high-reward, low-risk setups that provide opportunities to maintain a weekly profit goal.
The key is to not be on the wrong side of this teeter totter when it swings into motion.
We Saw: A stock market pushing to maintain highs —
- Promise of stimulus bolstering “hope-ism”
- Big Tech making gains to boost Nasdaq
- Video streaming services gaining, growing
We’re Watching: Direction this seesaw market snaps —
- Staying focused all the way through setups, targets
- Tickers with an investment in fitness, health
- Setups in: ZM, NFLX, AMD, PYPL, ATVI