Market Report: Congestion and Decision time
By Todd Horwitz on
Jan 19, 2021 at 4:32:14 PM
Todd Horwitz Chief Strategist BubbaTrading.com
Markets fell slightly last week except for the Russell; all indexes are near all-time highs. The trend is higher, and the stimulus should continue to keep a floor under these markets. Eventually the trend will change but one thing traders and investors learn is to never fight the tape.
The options markets continue to support the rally with call buying retaining the number one strategy for the week. The option buying is keeping the VIX higher and seems to have found a new level of support. When you add the FED put to the mix the rally should continue.
This is a short week with the Martin Luther King holiday Monday. Options continue to lead to the bullish side, but bearish strategies are closing the gap with some put buying. Bull puts and bull put spreads are in the top 5 indicating that traders still see strength.
Tech continues to lead the run higher however the SPY has slid into the top spot followed by AMZN, AAPL and TSLA which is no surprise as we begin earnings season. XLF leads the bear side followed by XLF and X. Should be an interesting week. Remember patience and discipline are always the best response to any market.
Todd “Bubba” Horwitz