Tech Wreck Tuesday Slams Market
Traders might want to consider this market environment a time to back into a safe place and double-check their trading plan.
Too many people appear to be trading with the old “hope and pray” play with the fast pace of this selloff. Simpler’s traders are making sure their trading setup is well-defined and they stick to that setup to give them an edge.
No guessing, wondering, or overthinking this market: there’s either a setup to trade or not. We’re keeping plays simple by taking the easy move if available and getting out.
This level of patience is often difficult for traders with this much volatility in the market. There may be a thousand possible trades, but our traders realize there are likely only a few viable trades for individual trading styles in a market like this. Our trade alerts have been limited to start the week as we wait for options.
We’re watching honey-badger stocks (doing their own thing despite the market), IPOs, indexes, and the strength of the dollar.
All markets revert to the mean which signals there may be another day of selloff ahead.
As much as we’re itching to trade more, if the market is imploding and we don’t have any trades on that’s not a bad position. If we were to have trades on and the market implodes further tomorrow and it hurts the trading account balance, that’s not a position to be in.
We Saw: another day of heavy market selloff –
- Technology stocks wrecked
- Nasdaq falling further toward worst week in March
- Analysts still looking for strong 2021
We’re Watching: any honey badger movement –
- Safer plays in IPOs, indexes
- How a strong dollar could further depress stocks
- Our patience meter and protecting account balances