Market Report Markets Battle Nasdaq Looks Weak
By Todd Horwitz on
Feb 21, 2021 at 1:08:21 PM
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Market Report: Markets Battle Nasdaq Looks Weak
By
Todd Horwitz Chief Strategist BubbaTrading.com
Be Prepared not Surprised.
As we look at the action last week market trends looked like they were shifting. There seemed to be a real possibility that the bull market was over. However, Tuesday started another rally taking the Dow and Russell to new highs while the S+P was close. However, the Nasdaq was weak and could have been a lower high, meaning lower prices are ahead.
We do not predict markets; we react and watch the price action. There have been many mixed signals including lousy volume on the big rallies last week. There are many factors and a case can be made for the bulls as well as the bears. The price action will lead the way. Those who try to predict what is next are usually wondering why they lost their money.
The options continue to signal more bullish action ahead, for the 20th week in a row call buying has led the way. The rest of the top five strategies are mixed between bullish and bearish. However, one important thing to remember, trades are made for various reasons. The long call buys could be covering up shorts, this is what makes the price action so important.
The bullish symbols continue to repeat with this week being no different. The leaders this week were GME, TSLA, DKNG, BA and SQ. The bear side is definitive with the SPY, SPX, XLF, XLE and XOM. Those are all S+P or oil stocks, which can lead to a sell off. It is certain to be an interesting week. We will be ready to react to what the market offers.