Todd Horwitz Chief Strategist BubbaTrading.com
Be Prepared not Surprised.
It has been a long time since the major indexes have looked this bad. We have seen a trend reversal in all indexes except for the Dow futures. Bonds continue to be ugly sending the FED a message to quit with the QE and let interest rates rise. Metals have fallen under heavy pressure, in other words where are the safety plays.
The big question here: Is the Bull Market over? There is no real answer to that now, we can say the trend is lower and the possibility that it is over exists. However, the past 10 weeks the number one option strategy has been call buying which on its bullish. You must remember, we don’t know the reason for the call buying, it could be to create a synthetic put or cover up dome shorts.
As we look at the top 10 list of option strategies used last week, after number 1 call buying the next four are bearish, bear calls, long puts, bear call spreads indicting more of a bearish tone. However, the price action will confirm.
The bull symbols trading are still in tech, AAPL, DKNG, SQ and PYPL lead the way. The bearish side is a potpourri of SPY, QQQ, NUGT, XSP and SNDL. There are many things in play here with warning signs galore, is the bull market over
Patience and discipline are always the best strategies.
Todd “Bubba” Horwitz
BubbaTrading.com