Friday, January 22, 2021

The Walkaway Trade

walking-away-41This is an end of the quarter trade. On the last day of the quarter, the portfolio managers have a tendency to run out of money after marking up stocks earlier.

So, by 12:00-1:00ish CST the S&P is susceptible to a decline through the afternoon. Traders look to set up a short position in the early to midafternoon, as the professional money managers walk away, leaving the equities ready for an afternoon fade.

As with a lot of trading rules, use your awareness of this tendency in combination with proper chart analysis and a solid trading plan.