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Trend Trading – Handling Market Direction Trading In A Bull Market The Day After A Collapse

Jun 30, 2015 | Stock Market Outlook

One of the most profitable and at times exciting trading is found in trading the market direction itself. There are a variety of products available for investors to use to profit from trading market directions. Yesterday I used both the Spy Put Hedge Strategy and the SQQQ Ultra Short 300% NASDAQ 100 ETF. It is designed to return 300% of the daily price movements of the NASDAQ 100 index.

But trading to the downside yesterday during the collapse was easy. The direction of stocks was obvious with over 90% of all volume moving lower. Stocks were definitely heading down on Monday which makes trades like the SPY Put give back big returns. But this is a bull market and trading the trend in market direction is more difficult on the day after a big market collapse.

This strategy discussion article is for FullyInformed USA Members interested in learning more about trading the market direction as I look at how to trade on the second day of a strong market pullback. The focus on day two of a collapse is to continue to bring in profits but also to protect capital from bounces and swings in market direction. Learning what signals to watch for and what tools to use as well as what products to be considering for trading can make a big difference to the returns achieved.

Trading The Trend – Market Direction Trading For Profits

FullyInformed USA Members can read this strategy article  directly through this link or they can sign in to the full site here. Non-members can join here or read about the benefits of a membership.


 

Disclaimer: There are risks involved in all investment strategies and investors can and do lose capital. Trade at your own risk. Stocks, options and investing are risky and can result in considerable losses. None of the strategies, stocks or information discussed and presented are financial or trading advice or recommendations. Everything presented and discussed are the author’s own trade ideas and opinions which the author may or may not enter into. The author assumes no liability for topics, ideas, errors, omissions, content and external links and trades done or not done. The author may or may not enter the trades mentioned. Some positions in mentioned stocks may already be held or are being adjusted.

Market Direction Internal Links

Market Direction Portfolio Trades for 2014

Profiting From Understanding Market Direction (Articles Index)

How I Use Market Timing

How I Use Market Timing

Understanding Short-Term Signals

Various Market Timing Systems

Market Direction Portfolio Trades (Members)

Market Direction External Links

Market Direction

IWM ETF Russell 2000 Fund Info

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