Stalking ‘Vibrant’ Stocks, Sectors In Choppy Market


Simpler Trading Team

Dec 07th 2020  .  3 min read

What’s a trader to do?

The market pulled against itself to start the first full week of December. The Dow was down but held above 30,000 while the Nasdaq inched up to a new high and the S&P 500 dipped slightly.

The indexes closed Monday with the Dow at 30,069.70 points to fall .49% (dropping 148.47 points). The Nasdaq ended on a record high at 12,519. 95 points for a .45% gain while the S&P 500 barely missed breaking even with a .19% drop to 3,691.96 points.

Projections and “sentiment” among big players are that the global and U.S. economies will rise again once a sound Covid-19 vaccine is in mass distribution. But the market just doesn’t seem outright committed to positive outcomes into next year.

All the push, pull, and hope affecting the market leaves traders wondering which is the New Year direction to bet on.

Traders have dealt with a lot this year — ongoing pandemic, economic shutdown, personal lockdowns, crazy news, wild political season, market crash, historic market recovery, wild swings with new lows and record highs, Covid-19 vaccine, and the uncertainty of what’s ahead tomorrow much less next year.

Big concerns next year will likely surround vaccine distribution and effectiveness, lifting of lockdowns, economic strength within a “normal” market ebb and flow influenced by economic stimulus, navigating (and profiting from) winds of political change, housing market influences, rise of cryptocurrency, and the level of market volatility.

Trying to wrap your mind about “now” and “tomorrow” is enough to send many traders into their own trading shutdown mode — stay in cash and wait it out.

For those who want to be a little more adventurous through the end of the year, there are opportunities.

Simpler’s traders are stalking stocks that appear to be breaking out in “vibrant” areas of the market. These can be leading stocks, strong industry groups, or sectors with momentum.

The Nasdaq is a continual leader and example in stalking stocks thanks to the strength of key tickers in the technology sector.

The market and all the pieces that move it may well extend this “push and pull” through the holiday season.

We Saw: Nasdaq hitting a new high — 

  • Tesla leading tech with even higher market cap
  • Immediate, long-term effects of new lockdowns
  • Positive projections into New Year

We’re Watching: Moves that follow any market momentum —

  • “Stalked stocks” squeeze setups likely to explode
  • Patience for momentum in an uncertain environment
  • Setups in: PLTR, TSLA, NVDA, NFLX

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