New ‘Phoenix’ Targets Directional Stock Market Moves

In this article:

• Setting up plays from AMZN stock split
• Reviving trading plans with “Phoenix”
• Experts were once beginners

This year has proved tough across the board in the economy, politics, world affairs, and trading.

May couldn’t go away soon enough due to the volatility and living up to the historical “sell in May and go away.” The three major indexes – Dow, Nasdaq, S&P 500 – dropped to new lows followed by more lows, and “relief rallies” didn’t last long enough to counter the descent into a bear market.

Traders were forced to dust off short side strategies, or learn about bear market trading which many have never seen before.

There have been few “diamonds in the rough” in this uncertain market, but those with the willingness to dig through this market can unearth opportunities.

Finding directional stock market moves

Did you miss plays on the big split?

The last day to trade Amazon (AMZN) before the 20-for-1 stock split was Friday. The split takes effect on Monday, June 6.

Trading a stock pre- and post split can be tricky for traders. Amazon hasn’t held up as a “pandemic darling” and has declined most of this year with some upward movement in recent sessions.

Simpler’s traders worked AMZN plays throughout the pandemic over the last two years. Is this high-profile ticker past its prime for retail traders?

Danielle Shay, Vice President of Options, put together trades in AMZN pre-split and is poised to take advantage of moves post split.

Danielle recognized that stock splits can open up potential moves and follow-on trade setups for those who missed the run-up into the split-adjusted price (AMZN closed down at $2,447 on Friday, a 2.52% dip).

The focus is on key levels of AMZN stock and setting up trades with bullish butterflies.

AMZN rallied going into the split and broke higher above key levels on the stock chart. While most targets for options plays have been met, there are possibilities after the split thanks to a lower price point.

Danielle is targeting AMZN to move higher and considering directional trading strategies that may include stacking butterflies, i.e. adding more butterfly options as price action moves favorably higher. While there is risk in a setup like this and any trade, she is working on the possibility that AMZN could spike to the upside after the split despite market results on Friday.

The stock market was down across the board Friday after posting strong upside performance on Thursday.

The Dow closed at 32,899.70 points to fall 1.05% (dropping 348.58 points on the day). The Nasdaq dropped to 12,012.73 points for a 2.47% tumble while the S&P 500 crumbled 1.64% to 4,108.52 points.

Trader focuses on directional trading strategies

This shift to a bearish stock market may prove to be one of the most volatile eras in history for traders.

A trading environment pressured by constant potential to lose quickly and lose heavily is a challenge for traders, whether a beginner or seasoned pro.

What has proven the difference for successful traders at Simpler Trading is those who are determined to be traders – actively trading no matter what an uncertain market throws at them.

Active traders recognize, identify, and pursue directional trading strategies no matter the direction or speed at which the market shifts.

Retail traders today seek any edge they can put together to take on this market. That edge can present itself in an informative, experienced voice to offer insight and understanding in this uncertain journey.

The people at Simpler Trading are our biggest asset. The information, resources, training, and experience our traders deliver reaches around the world.

Danielle Shay, Vice President of Options, is one of our traders making an impact in the Simpler community.

What she has uncovered throughout this bear market transition is a way to improve tools and strategies that can actively identify opportunities in this market.

This market shifts quickly making it tough for traders to anticipate directional trading moves.

Danielle set out to improve her “go-to” tool for tracking momentum stocks and, much like the mystical bird for which it is named – her vision gave rise to the Phoenix Finder Turbo.

Phoenix Finder Turbo is a multi-purpose tool designed to work within any trading plan. This tool targets and identifies stocks set to rise higher once again – like the mystical phoenix of Greek lore.

Important in this bearish market, Phoenix Finder Turbo identifies strong stocks and weak stocks at any given time. The tool uncovers stocks and sectors showing the most strength to the upside and those that have potential when shorting to the downside.

Traders can reveal directional moves in stocks and sectors across the board.

A critical improvement within Phoenix Finder Turbo is the information that reveals which sectors are moving due to sector rotation. When rotation flows into a bear market, this improved tool exposes the weakest tickers so traders can develop setups on the downside. This also helps identify relative strength in momentum stocks.

“In this kind of volatile market environment, it’s more important than ever to pick the strongest stocks when planning long trades and the weakest stocks when planning short trades,” Danielle stated.

An added benefit to Phoenix Finder Turbo that helps traders is its design that works well in combination with the widely used squeeze indicator.

Is trading an option for you?

This market can leave traders questioning whether they want to start trading or even continue trading.

Sometimes you need a little insight into trading without a long-term commitment.

If you are curious to see “how traders trade,” then come join us for FREE. Simpler Trading opened the Simpler Free Trading Room, where traders can take a peek behind the veil to better understand what it’s like to trade with professional traders.

Sign up today and get access to our live online chat room, recorded live sessions, and free classes that might just open new doors along this trading journey.

Embrace risks, rewards of trading in any season

As a vital part of Simpler Trading, Danielle continues to develop new strategies while improving tools and training, like her latest adaptation to this ever-changing market using Phoenix Finder Turbo. Whichever direction the market moves, Danielle embraces the risks and rewards of trading in any season.

Are you a trader ready to “revive your game” and adapt to what lies ahead?

Take time to get to know a teacher with the plan to always excel.