Market Report All bullish all the time
By Todd Horwitz on
Aug 28, 2021 at 3:54:32 PM
As the markets get slower the bulls continue to buy. We saw new highs in the S+P and Nasdaq last week, a higher Dow and the Russell starting to make some noise. We should always remember that dull markets tend to drift higher which brings the old Wall Street adage “Never sell a dull market”.
Trading doesn’t get much slower than we have been witnessing for most of the summer. This week should be the slowest of them all with the Labor Day Holiday end of summer vacation time. Europe is still basically closed, and most U.S. traders are on vacation. This happens every summer.
The markets will go up until they don’t, the real question: Are stocks trading from fundamentals or is the added money supply and low interest rates? We would argue that the rally is a creation of the FED and never-ending expansion of the money supply.
In the options world Call buyers remain atop the leader board followed by Bull Put Spreads and then Bull Puts. There is very little negativity around these markets which is driving the VIX lower. We must always remember complacency is the architecture of our downfall. We make no predictions just point out the facts.
The bullish symbols for the week were a little mixture of Gaming and Tech. DKNG led the way followed by NVDA, TSLA, SPX and WYNN. The Bears were led by a mixture as well with SPCE leading followed by XLE, SPY, SWKS and XLF. Look for quiet trade, this is no time to be aggressive.
As traders and investors, we have one thing to remember, follow the trend of the market. Be patient disciplined and leave your emotions out. The most important thing to remember is money management and self-control.
Todd “Bubba” Horwitz