To make money in the stock market, you have to adapt quickly.

A single strategy rarely works all of the time.

Since the market bottomed in March 2020, buy-and-hold has been the best strategy.

But that’s changing.

Right now, volatility is picking up, and short-term trading is back in play.

Over the past two weeks, the S&P 500 Index has moved an average of 1.7% from high to low during the trading day.

That may not seem like a lot. But the indicator has only reached that level twice since November 2020.

And when the market moves this much, day trading has the potential to be lucrative.

Amplify Your Returns With Short-Term Trading

As you can see in the chart below, periods of volatility come and go.

And when major news surfaces, there can be huge spikes.

S&P 500 10-day average market move

(Source: Bloomberg.)

As market moves get bigger, so does the opportunity.

Don’t get me wrong: I’m a firm believer that if you don’t need your capital in the short term, you should stay invested.

Over the long run, buying and holding good stocks has been rewarding.

But using a clearly defined short-term strategy with part of your portfolio can amplify your returns.

Short-term trading makes even more sense when the longer-term trend is unclear.

And right now, there isn’t a clear trend.

The market needs to see signs that inflation will slow down before the major indexes make their next leg higher.

Federal Reserve Chairman Jerome Powell has suggested that inflation will persist longer than he expected.

This implies that future rate hikes could be on the way. For traders, this means game on.

Changes in interest rate policy lead to stock market moves.

When this happens, the market can struggle to find direction.

If you owned stocks in 2018, you might remember this happening.

The Federal Reserve raised interest rates. And during that time frame, stocks remained in a sideways trend.

S&P 500 interest rates chart

(Source: Bloomberg.)

As you can see, the market moved but didn’t have a clearly defined direction.

Short-term trading carried the most profit potential during that time frame.

So, if stocks follow the same pattern again, don’t be afraid to add a short-term strategy to your arsenal.

And Bryan Bottarelli at Monument Traders Alliance has a completely new way of making short-term trades.

He calls them “overnight trades.” They’re designed to make you money after the market closes.

Bottarelli has a great record — his trades have a win rate of 78%.

So, click here to find out how these “overnight trades” work.


Steve Fernandez

Research Analyst, Strategic Fortunes


Morning Movers

From open till noon Eastern time.


Trupanion Inc. (Nasdaq: TRUP) provides medical insurance for cats and dogs on a monthly subscription basis. It is up 31% on the announcement of a partnership with online pet product retailer Chewy to provide pet health insurance to Chewy’s 20 million customers.


Novavax Inc. (Nasdaq: NVAX), the vaccine maker, is up 23% this morning. The move came after the head of the European Medicines Agency said that it could soon authorize Novavax’s COVID-19 vaccine for use in the EU.


Intellia Therapeutics Inc. (Nasdaq: NTLA) is a genome editing company that focuses on the development of therapeutics. It has no news of its own to report; rather, it is up 18% as it trades in sympathy with its rival Crispr Therapeutics, which rose when Cowen & Co. initiated coverage on the stock.


Adagio Therapeutics Inc. (Nasdaq: ADGI) is a clinical-stage biopharmaceutical company that focuses on the development of antibody-based solutions for infectious diseases. It is up 16% on a rebound today after falling Monday along with other COVID-19 vaccine stocks.


MongoDB Inc. (Nasdaq: MDB) provides a general-purpose database platform worldwide. It is up 16% after reporting results for a strong Q3 that beat estimates by wide margins thanks to increased customer adoption of its platform.


Expensify Inc. (Nasdaq: EXFY) provides a cloud-based expense management software platform to individuals and businesses. It is up 15% after several analyst firms including Citigroup, JPMorgan Chase and Bank of America initiated coverage on the stock.


Fate Therapeutics Inc. (Nasdaq: FATE) is a clinical-stage biopharmaceutical company that develops programmed cellular immunotherapies for cancer and immune disorders. It is up 15% after Cowen & Co. initiated coverage on the stock with an outperform rating.


Dada Nexus Ltd. (Nasdaq: DADA) operates a platform for local on-demand retail and delivery in China. It is up 15% on a rebound after trading lower in sympathy with Didi Global when it announced its plans to delist on U.S. exchanges.


Beam Therapeutics Inc. (Nasdaq: BEAM) is a biotechnology company that develops precision genetic medicines for serious diseases. It is up 14% today. It is another gene editing stock that is trading higher in sympathy with Crispr Therapeutics.


IonQ Inc. (NYSE: IONQ) develops general-purpose quantum computing systems. This is a generally volatile stock, and it is up 14% this morning with no significant news driving the move.