Ping-Pong ‘Turnaround Tuesday’ Boosts Market
Turnaround Tuesday continued a back-and-forth phase as sellers retreated to buyers across the board.
The Nasdaq roared back from Monday’s losses as it spiked 3.69% to close at 13,073.82 points on the day. The S&P also recovered to post a 1.42% gain to 3,875.44 points. The Dow wasn’t to be outdone and continued Monday’s run up with a .10% rise to close at 31,832.74 points.
The Nasdaq was up more than 500 points in the afternoon before late selling into the close.
This was one of those “ping-pong” days where short-term opportunities were there for the taking. Market setups have gone back and forth quickly in recent days, much like a ping-pong match. Traders who maintained ready capital were able to step in for a few hits during this rally.
Simpler’s traders followed fast-moving setups and didn’t execute long-term trades. Most focused on short-term opportunities while positioning to avoid any sudden gaps down.
Evaluating risk is important in this market environment where “there’s always an entry,” but not always one that fits each trader’s risk profile.
Traders are watching internal signals while expecting some rough trading zones ahead where the market is not favorable to those wanting to limit risk.
Indexes aren’t “out of the woods” in this gyrating environment, and consensus among Simpler’s traders is the last of the lows haven’t been seen. Another significant gap down is in the realm of possibility sooner than later, but of course the market will do whatever it wants.
Short-term hedges or bearish plays are still in the cards through this week following today’s upside action. Traders are scanning watch lists for tickers with higher probability setups.
Simpler’s traders remain focused on shorter term, directional opportunities in a continued “hurry up and wait” mode.Trades are centered on setups that might run for days compared to past plays of several weeks.
If it seems there are no clear directions on trading setups, it’s because this market isn’t revealing any clear signals. This is a “pop and drop,” day-by-day trading cycle where focus and caution are valuable trading skills.
We Saw: Stock market rally across the board —
- Nasdaq, Big Tech lead fast upside run
- Economic stimulus bill set to infuse more cash
- Digital streaming companies continue to grow
We’re Watching: Strength of Big Tech, Nasdaq in short term —
- How hot, how fast inflation hits economy
- For another flush before long-term direction
- Setups that don’t “risk the bank”