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What’s Going On in the Market?
The stock market is deep in a sell-off, and if you’re not navigating it properly, you’re going to get smoked. In this post, I’ll share my bear market trading strategy and how I’m managing these insane swings. Today was another bloodbath, but it’s all part of the game. As a trader, this is what you live for—boots, coots, butts, and cuts. Let’s break it down.
The Index Setup: This Ain’t a V-Shape Bottom
We’re seeing classic bear market action:
- Gap downs and weak opens
- Mid-day squeezes
- Late-day fades
We hit the 20 SMA after the Trump tariff bounce, slammed into resistance, and rolled over. Now it looks like we’re headed to retest the March lows. If that level breaks, all bets are off.
How to Trade a Bear Market: The Real Strategy
Fade Strength, Play Extreme Weakness
This is not the time for predictions or opinions. Price action is everything. In a bear market, your playbook should be:
- Fade extreme strength (especially gap ups into resistance)
- Buy only at extreme oversold levels with reversal setups
If we gap up tomorrow, I’ll be looking to fade it. If we gap down into support levels, that’s where I’ll scalp longs.
Don’t Trade the News, Trade the Chart
Whether the Trumpster caves or not is irrelevant. You can’t build a trading strategy around headlines. Stick to the chart.
Watch the EMAs
If we cross back over the 20 SMA and hold, then it’s time to shift bias and think about playing the long side. But right now, we’re not there yet.
Key Bearish Setups I’m Watching
NVIDIA (NVDA)
Headed for $485. This one’s a straight-up breakdown. Any bounce is a short into resistance.
Tesla (TSLA)
Breaking down off multiple tests. If we get one more inside day, I’m watching for a move under 220.
Meta (META)
Pig of pigs. It’s breaking key levels. I’ll be looking to short gap ups.
MU (Micron)
Bear flag setup.
TSM
135 is in the cards. Clean breakdown if it gets going.
Palantir (PLTR)
Textbook fakeout today. We hit the open with a huge green candle, and then it got smoked. Classic bear market trap.
When to Flip Bias
Once we break back above the 20 SMA and reclaim some moving averages, we’ll flip the script. Until then, it's a bear market trading strategy all day.
How the Big Money is Playing This
There are no panic candles—just slow, methodical selling. That means big money is exiting positions. The algos are selling every pop.
Don’t be a line drawer in this environment. This isn’t a bull market. It’s not about drawing squiggly lines and waiting for breakouts. It’s about survival.
Final Thoughts on Trading This Market
If you’re a swing trader—stay cash. If you’re a day trader—this is your time to shine.
I’m not using targets right now. Just managing my trades one leg at a time, scaling out into strength.
This is a trader’s market—high ATR, high risk, high reward. But you gotta stay sharp, size properly, and keep stops tight.
Stay Safe, Stay Clean
This market will change again, maybe in weeks, maybe in months. But right now, it’s a scalper’s game.
Let the super traders do their thing. If you're learning, take notes, trade small, and don't blow up. I love you guys.
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🖋️ About the Author
Kunal Desai is the founder of Bulls on Wall Street, with over 20 years of trading experience. He’s trained thousands of traders to master not just the tools—but the mindset and strategy behind consistent profitability. His 60-Day Bootcamp is one of the most respected trading programs in the industry.
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