‘Split’ Market Requires Focus On Directional Bias
There was plenty of trading to start the week as the major indexes were split on which direction they would be moving.
Each day traders ask the same question: Which direction is this market moving?
When the Dow stumbles and the Nasdaq and S&P 500 climb, direction can be even more tricky.
Despite the “split” personality of the indexes, expectations are for the market to grind higher.
The daily probability for an uptick is backed by months of the market pushing hard to outperform to the upside. Any shift to the short side, other than the occasional pullback, has been getting shunned.
Part of what guides Simpler’s traders is having a stock watch list that mirrors this persistent uptrend. Tickers with a directional bias lead the way in selecting specific symbols to trade.
The market today presented opportunities across the board to tap into the ongoing trend of flourishing tickers in this “pandemic ignoring” environment.
Tech stocks have presented multiple horses in this race to the upside. When you find one that’s running with directional bias, it makes sense to sit on your hands and ride that pony for all it’s worth.
The larger picture in this market is uptrend, but traders are wise to control risk with definite down days ahead.
We Saw: split performance in the indexes –
- Nasdaq pushing to regain its all-time high
- Dow stumbling, but essentially flat
- S&P 500 continuing with its uptrend toward a record high
We’re Watching: for favorite “horses” to keep running –
- As favorites in watch list continue uptick
- For aggressive short-term opportunities
- Our favorites: EBAY, TSLA, ETSY, ZM, TWTR