dani face dani quote

Past and current conditions

Hey Five Star Trader,

Wow. The current market has been seeing a ton of action recently. This is due to a variety of factors, but before getting to the current market environment, I want to talk to you about the past year.

It’s easy to get caught up in the day-to-day, especially on days or weeks where all you see is red. But investors know that, on the whole, the stock market performs. Even in the face of arguably the biggest catastrophe the economy has ever seen, the stock market stands here a year later at even higher prices. As long as traders make solid analysis, determine their time frame, and don’t let the wiggles shake you out, we should stay in pretty good shape. The stock market is the only place on earth most people are afraid of a sale! One of my favorite quotes from Warren Buffett is “Be greedy when everyone is fearful, and fearful when everyone is greedy.”


Now let’s jump into current conditions…

Jerome Powell recently came out with another statement that hugely affected the market’s attitude. With so much power over market conditions, there comes a question: Do you think they are up for the job? For me, I am undivided on whether they are or aren’t. As this has been an unprecedented year, and they do not have a playbook they can repeat from a past pandemic. However, they have done a decent job of making us believe they are up to the task. It’s more so when their commentary causes jitters, that impacts the market. Every sentence spoken leads investors to question their capabilities is what causes the market movements. The market likes stability and known quantities, and whenever the Fed demonstrates something else is when investors get spooked. However, look at the stock market over the past year. The Fed has proven they will do anything and everything to sustain the economy and markets. Even if they don’t entirely know what they are doing, I would argue they have done well to maintain investor confidence in spite of challenges. 


How am I trading these conditions?

The rally into January and the election have lost steam, market volatility picked up after the core of earnings season in February, and sentiment was so high it ran out of a reason to rally so we experienced a bit of a triple whammy. However, I am gearing up for a busier April, as many charts and indexes are consolidating, which should make for some great breakouts. I love trading the ‘run into earnings,’ or the rally higher into core bullish companies in which investors are anticipating a strong report. Etsy (ETSY) and Netflix (NFLX) are two of those names, with a close eye on Microsoft (MSFT), JPMorgan Chase (JPM), TSMC (TSM), Freshpet (FRPT), and Carvana (CVNA) as well. This seems like a random hodgepodge of names, but each of these names typically moves higher into earnings, and as that season comes around again, I like to start looking at them 3-4 weeks before their reports come out.

Want to learn more about how to take advantage of quarterly gains? Join me for my free webinar on Wednesday, March 31st, at 7:00 pm Central. We will be covering setups, case studies, and more.

Leave a Comment

Up Next...

Inflation Not To Blame For Market Pullback…

Hey 5-Star Trader, May is seasonally a weak month for the market and the media likes to blame different things for its poor performance. Lately, they’ve named the fear of inflation as the latest culprit. Yes, there are some legitimate fears of inflation, especially with the excess money printing thanks to several stimulus checks, but there … Read more

Read More

Entering Final ‘Run into Earnings’ Wave…

Hey 5-Star Trader, “Tuesday Trade” Journal: One of the most important concepts in trading is to review your work, and learn from the good and the bad. Identifying what is working is critical — to do more of it. So, to lead by example, each Tuesday, you’ll get a trade from my trading journal, in … Read more

Read More

Don’t Count Out ‘Average’ Retail Traders

Hey 5-Star Trader, Recently, Dogecoin has been making headlines as its value continues to spike, leaving Wall Street in awe. Are we on the cusp of a trading revolution? Is history repeating itself? At the beginning of this year, we saw a major market shift in favor of Gamestop (GME). Previously, it was a dying … Read more

Read More

Subscribe Today!

Want to walk the path to trading success together? Join Danielle’s “Five Star Trader” E-Letter for market insights, tips, tricks, and special bonuses.

Sign Up Now

Free Downloads

Squeeze Checklist

When you find a squeeze, check these boxes to see if you’re looking at a higher probability bet.

Risk Checklist

Before we can make money we must define the rules that define our risk parameters.

High Probability Plays in a Directional Market

Download Danielle's free eBook

10 Steps to Becoming a Successful Trader

Commit to becoming a successful Trader

Strategy Selection Risk Gauge

Danielle focuses on creating a constant stream of income through the selection of trend-following, directional plays.

Upcoming Appearances

Check Back for Upcoming Dates