Market Report Interesting, Diverging Markets

 Todd Horwitz Chief Strategist BubbaTrading.com

Be Prepared not Surprised.

The wild and crazy markets roll on. Major divergences have become a regular occurrence. Last week saw the Dow and S+P make new closing highs, while the Russell and Nasdaq closed lower for the week. That tells a story of uncertainty.

We are witnessing the power of the FED and cheap money policies. While the FED blows up the money supply, they maintain their stance of no inflation. If you have been to the gas station or grocery store recently the inflation data is laughable. Of course, it appears the FED continues to use antiquated models.

One thing we must remember, don’t fight the tape or trend. Until further notice the trend appears higher and is being backed up by the options being traded. Call buying remains in the leadership role followed by bull put spreads and put selling. In other words, it looks like the bulls are still in charge.

The bullish symbols continue to rotate with this week’s leaders, IWM, FB, BA, AAPL and the continuation of GME and DKNG. There are a few new names on the bear side as well with the SPY leading the way followed buy AMD, AMZN, XLU and MCD.

There are many things that don’t make sense but trying to navigate or predict the end of a bubble are impossible. Stay with the trend until it changes. If you try and trade the news, you lose.

Every Monday we do a strategy call. This week the call starts at 4:30 EST.  Use the link below to register 

2021-03-29 Monday Night Strategy Call 

Todd “Bubba” Horwitz

BubbaTrading.com