Any Sense To This ‘Nutty’ Market?

“Tell me how this market makes sense.”

Traders are expressing frustration as the bullish momentum continues in what many consider a bear market.

Trading in this environment requires flexible plans and nimble actions to stay on top of opportunities. Volatility continues in a market that has proven erratic with little indication it wants to settle into a solid trend.

Simpler Trading has its full-time traders working the markets live every day.

Here are highlights of live-trading insights delivered during market hours today in the Simpler Trading options chatroom:

Henry Gambell (Senior Managing Director, Options Trading) – working two-sided trades with extra caution because of elevated put/call ratio. Expecting this to spur a market correction. TSLA tops his list for a setup for a gap higher. Waiting for squeezes to fire and looking for bullish positions in tech and gold.

John Carter (Founder of Simpler Trading) – started the session with a bit of calm and then worked in adjustments of TSLA while looking for a potential new bearish fly. Mid-morning flush boosted a balance of strong longs with hedges as the markets settled into the lunch hour. Closed the day by tackling the churn while eyeing indexes into tomorrow and anticipating a sell off next week.

David Starr (Vice President, Qualitative Analysis) – Watching active CWH trade as it hits key levels and looking for a bullish squeeze to get going in this ticker. Taking profits as the next setup builds. Cautious on LMT for an early exit due to potential stall in its run.

Allison Ostrander (Director of Risk Tolerance) – Nice run up on the Bullish Divergent Bar in TTD on key chart level. Glad to take profits during the run to counteract tight trade fills on the security. Watching overall bullish upticks while always minding risk and only risking what she’s willing to lose.

TG Watkins (Director of Stocks) – Sticking to tracking stocks on the 15-minute timeframe in a wild market. Using the shorter timeframe as a map to avoid tricky charting gaps while trailing bullish profit opportunities in a market that doesn’t want to follow internal signals. It’s a 15-minute, 50 EMA world.

Simpler’s traders know the market is “nutty,” but they embrace the volatile movement.

We can’t change the market, but we can trade it any direction it runs.

We Saw: Markets pushing higher from March lows – 

• Airlines struggling for survival
• Social unrest continues as stocks climb
• Renewed called for negative interest rates

We’re Watching: … an erratic market with bullish plays –

• Signs of China squelching on trade deal
• Zoom use is zooming with more working from home
• Targets in: CWH, LMT, TSLA, SPX, NFLX, TTD