Todd Horwitz Chief Strategist BubbaTrading.com
Be Prepared not Surprised.
Just when you thought the bubble was bursting, markets make new all-time highs. For those trying to time the market, once again they walk away with their tail between their legs.
WallStreetBets continues to crate havoc in the markets. They started with GME and AMC squeezing GME from 50 to 483 and now back to 64. AMC from 5 to 20 and back to 7. They were attempting to do the same in Silver, when it didn’t work, they claimed it was fake news.
Short squeezes are a part of markets which is why Bear Market rallies are the most vicious. However, everything points to the rally to continue. Whether it’s the chase for yield, additions to the money or there simple is no place to go. When trading its always best to follow the path of least resistance.
Option buying remains strong which continues to support the VIX near the 20 level. Although we have seen some big spikes it appears the new levels for the VIX are around 20 which is almost 100% higher than a year ago. Call buyers are firmly in charge.
The top options strategies for last week were split, bullish/bearish. Tech remains the leader on the Bullish side with TSLA, AAPL, QQQ, SQ leading the way. If we consider online gambling as tech you can add to the bullish list, DKNG and PENN. The Bearish leaders were SPY, XLF, GME, DIA and JWN.
Trading is best when we remember to know our exits, stay away from news items. You must keep emotions and opinions out as we are witnessing right now. There is no reason for these markets to continue higher except that they are.
Todd “Bubba” Horwitz