Stock Market Heat Is On For ‘Hot Zone’ Setups


Simpler Trading Team

2 min read

There’s a saying, “Strike while the iron is hot.”

Iron ore may not be a hot commodity right now, but one market has entered a “hot zone.”

The tech sector appears ready to set up for a breakout from consolidation heading into earnings over the next few weeks. Dozens of tickers are showing positive volume and squeezes heating up for potential moves higher.

This season presents consistent opportunities with a higher degree of reliability in a market that has proven wildly unpredictable over the last year. Traders know this market can change in the blink of an eye – especially during earnings season.

At Simpler Trading we’re always sharing what is working for our traders in any conditions the market presents. Quarterly earnings offer a seasonal time frame where traders can focus on specific patterns and setups for key trades.

Like that old saying alludes to – traders don’t want “hot zones” to cool off and lose the opportunity. They also don’t want to go down in flames taking on too much exposure.

Position according to your trading plan and make sure the risk vs. reward doesn’t burn you especially during one of these “hot zone” seasons.

We Saw: Market pulling back from record-setting rally – 

  • Oil, gold moved higher on the day
  • More questions surrounding Archegos issues
  • Digital currency competition heating up

We’re Watching: Potential for pull back into higher rally –

  • Renewing a love fest with Big Tech
  • Plans to take advantage of earnings season
  • Setups in: GOOGL, TSLA, SPX, DIS, AMZN