Is This a Bull or Bear Market?

NYSE: SPY | SPDR S&P 500 ETF Trust News, Ratings, and Charts

SPY – Just when stocks (SPY) look ready to tumble lower, they bounce higher once again. This has me contemplating that we could be in a trading range for a long, long while. Let’s discuss why along with the most effective trading strategies for range bound markets. Read on for more…

Let’s talk about what’s on every investors mind:

Is This a Bull or Bear Market?

I have written countless articles pointing out the superior merits of the bearish argument. Here are the most recent of those commentaries:

Why is Reity Now 32.5% Short the Market?

Sell in May? HECK YES!!!

And just to be fair, I even stepped into the shoes of the bulls to appreciate where they are coming from in this piece:

Contemplating the Case for a New Bull Market

But watching the volatile action this past week has me pondering a 3rd potential outcome. That being a long term trading range where bulls and bears fight back and forth. And we just chop around between 2,200 and 3,000 for a long time.

Just think about it. The problems of the Coronavirus will not quickly blow away and the bears will always have easy points to make about economic weakness that should result in lower stock prices.

Whereas bulls will say they are not blind to the current problems. Instead they are just looking out to a longer term horizon where the economy gets back on track. Add in unprecedented Fed and Government stimulus and they see it propping up share values.

This gridlock could be in place for quite some time until we have crystal clear proof as to whether the economy will continue to backslide into a deeper recession (or even depression). Or if re-opening the economy goes better than expected stoking the engines of growth that propel stock prices higher.

The above creates a perfect backdrop for a long term trading range where we experience scary drops followed by equally exhilarating rallies. Yet in the grand scheme of things stocks are not really getting any further ahead.

How to Successfully Trade in a Range Bound Market?

It is tempting to think that you can simply buy when stocks head lower in the range. And then sell as they get to the top of the range. But likely that is a fantasy world as volatile markets like we have now are rarely that straight forward.

However, the current market environment is actually the perfect landscape to employ a little known strategy that is favored by may of the elite financial experts. In fact, it is one of the most consistent ways to produce winning trades whether stocks go up, down or even sideways.

Just because some of Wall Street’s top players favor this trading strategy doesn’t mean its complicated.

Nor do you need to invest millions in each position. In fact, you can place these types of trades for as little as a few hundred dollars.

Want to Learn More?

Then join me when I host twenty year trading veteran Adam Mesh to share this powerful strategy with you on Wednesday May 20th. (Click here to watch replay now!)

Most of you probably already know Adam as one of the most well known and respected traders around.

But beyond being a great trader, Adam is also a close friend of mine. In fact, we are actually business partners who co-own StockNews.com and ETFDailyNews.com.

This means I greatly respect Adam’s investing insights and feel very confident sharing it with my audience.

So please join us this coming Wednesday May 20th @ 4:15pm for this timely event to learn one of the most effective trading strategies for volatile markets as we have now.

Click Here to Watch Replay Now!

Wishing you a world of investment success!


Steve Reitmeister

…but everyone calls me Reity (pronounced “Righty”)
CEO, Stock News Network and Editor, Reitmeister Total Return

 


SPY shares fell $1.00 (-0.35%) in after-hours trading Friday. Year-to-date, SPY has declined -10.58%, versus a -10.58% rise in the benchmark S&P 500 index during the same period.


About the Author: Steve Reitmeister


Steve is better known to the StockNews audience as “Reity”. Not only is he the CEO of the firm, but he also shares his 40 years of investment experience in the Reitmeister Total Return portfolio. Learn more about Reity’s background, along with links to his most recent articles and stock picks. More...


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