A Simple Checklist for Navigating Headline-Driven Markets
A market that’s driven by headlines can be challenging for technical analysts.
This past week was a good example. We saw a sharp selloff one day, a quick rebound the next, and then a whole lot of sideways action. Small-cap stocks looked strong for most of the week until Friday, which reminded us how quickly investor sentiment can change.
This type of back-and-forth can feel like an emotional roller coaster. But it doesn’t have to. When you follow a clear, repeatable system, you’re less likely to react to every headline or sudden price swing. Instead, you can step back, stay objective, and make rational decisions. This is important when you’re managing your hard-earned savings.
So many successful market professionals rely on rules. John Murphy has his 10 laws, Linda Raschke follows 12 technical trading rules, and Ralph Acampora outlines the 10 Commandments for buying and selling. Having a process is what separates long-term success from short-term stress.
For my portfolio, I like to run through a simple checklist after first looking at the overall market. I ask questions like:
- Is the long-term trend bullish?
- Do the medium and short-term trends align with the long-term trend?
- Has the stock broken through key resistance levels?
- Is it respecting important moving averages and gaining momentum?
- Is the stock’s sector leading the market?
- Is the StockCharts Technical Ranking above 70?
If you don’t already have a checklist like this, I’d encourage you to create one. It doesn’t have to be complicated, just consistent. To help you get started, we’ve included several classic resources below from respected market veterans.
- John Murphy’s 10 Laws of Technical Trading
- Arthur Hill on Goals, Style, and Strategy
- “The Trader’s Journal” by Gatis Roze
- Bob Farrell’s 10 Rules
- Richard Rhodes’ Trading Rules
The broader market is signaling uncertainty, which is something you’ll see reflected in this week’s articles and videos. After such a strong bull run, it pays to stay alert and prepared rather than be surprised.
Enjoy your weekend, and we’ll see you back here next week.
