Market Continues To Show Risk, Opportunity
Market Continues To Show Risk, OpportunityOctober 8, 2020
The stock market followed a mid-week rally with modest gains today to keep traders hopeful for a positive end to this week.
The Dow hit the 28,425.57 mark to gain .43% (rising 122.11 points on the day). The Nasdaq rose to 47.12 points for a .41% increase while the S&P 500 joined in with a .73% rise to add 25.06 points.
After two days of gains, traders would be wise to be mindful of headline risk – something dire in the news or social media – that sets the market tumbling.
While maintaining a cautious eye on media matters, Simpler’s traders are still leaning bullish on a market that has maintained an historic level of resiliency this year. Top trade performers so far have come from bullish picks for many traders.
As we’ve shared before, there is a constant watch on the broader market while narrowing focus to individual stock setups.
Promising signals have emerged for specific ticker setups.
The difficulty is that sometimes traders suffer from a blessing and a curse.
The blessing is many more people appear to have time (or have made time) to watch and analyze the markets. The curse is essentially the same – lots of time – but it turns into being too jumpy about all the market uncertainty.
Proper setups in this environment that lean bullish can provide opportunities to track a setup, take a trade, and walk away from the volatile chop. This is a more long-term, bullish plan that some of Simpler’s traders are undertaking. It presents risk, so be cautious within your risk management.
Simpler’s traders are taking advantage of short-term setups that can carry significant risk. These setups are tracking the volatility of the market as it twists and turns heading into the election in less than a month.
Again, risk only what you’re willing to lose.
We Saw: Markets ignore political tussles to stay positive –
- Sector leaders call for more stimulus
- Fed arguing against low interest rates?
- Fate of airlines with fewer flights, layoffs, no stimulus
We’re Watching: Long-term bullish opportunities –
- Short-term plays with higher risk against reward
- Election volatility plays for fast gains