Market Report Sellers try and Fail
By Todd Horwitz on Feb 21, 2021 at 1:08:21 PM ∙ Comments

 Market Report Sellers try and Fail



Todd Horwitz Chief Strategist

Be Prepared not Surprised.

Last week the sellers gave it the old college but were once again met by the buyers. All major indices made new highs as they continue to rack up the records. The FED Put remains the story, low interest rates, stimulus keeps the buyers happy.

There are a couple of illogical divergences especially in the bond markets. Although the FED continues to say there is not enough inflation and will keep rates low, bond markets are getting hammered which indicates higher rates.

The Bond/Fixed Income are the biggest markets in the world and appear to be in a battle with the FED. With FED continuing to hide behind an antiquated model to determine inflation, we could see a period of hyperinflation. The story will soon play out, the result will be huge for markets.

The Option Markets are still pricing bullish price action, for about the 10th week in a row call buying leads the strategy board. Although the VIX is falling Put buying came in number two this week. Rounding out the top 5, bull put spreads, bear puts and naked call selling.

We are seeing a change in the leadership, for the first week in many techs were not the leader. SPY and BA led the bulls followed by PLTR, NVDA and SQ (which is also a crypto play), Bear trades continued in TLT, HD XLF, FB and the VIX.

Todd “Bubba” Horwitz

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