Patience For Next Market Flush Or Push


Simpler Trading Team

Mar 08th 2021  .  2 min read

In a tale of conflicting trends, traders took advantage of a Monday surge that spiked the Dow into record territory while the Nasdaq gapped down as tech companies faltered.

Activity was hectic across the stock market as transports pushed the Dow higher; oil rose on Middle East issues; key tech stars struggled; 10-year bond yields chopped around; and the $1.9 trillion economic stimulus bill was approved.

Traders who maintained cash availability while waiting out the recent volatility, were able to take on setups and “take the money and get out.” No need for extended setups when this market is prone to turn quickly.

Simpler’s traders took advantage of the Monday action while not adding too many positions.

As the market twists and turns this week Simpler’s traders will keep looking for new opportunities that are expected to happen fast and not last forever. Taking gains where possible and staying “light and nimble” in numbers of positions is the go-to strategy.

This wild cycle – with the possibility of a fast gap down – isn’t unfamiliar territory for Simpler’s traders. Eyes are on watch lists to identify tickers holding their own against the volatility with the potential for strong upside setups.

Exercising patience remains the standard for setups to avoid getting caught on the wrong side of moves. Flat, in cash, and ready to go while looking for the moment in time where a setup aligns with our predetermined parameters.

No need to rush when waiting for a fast flush or the next big push.

We Saw: Stock market twisting, turning to start week – 

  • Dow spikes into record territory
  • Nasdaq falters with tech companies hurting
  • S&P 500 held before falling back at the close

We’re Watching: Thumb on patience button, light on the trigger finger –

  • Whether this rally sentiment holds against internal signals
  • Nimble while awaiting flush or big push
  • Setups with “in and out” plays