Todd Horwitz Chief Strategist BubbaTrading.com
Be Prepared not Surprised.
For months we have been witnessing a market that knows no bad news. Look at last Thursday when President Biden ran out the possibility of a 43.4% Corporates Tax. The initial reaction sent market sharply lower by Friday all bad news was gone and the S+P closed near record highs followed by the other three rallying strongly.
As we move into the new week there is no reason to believe that the rally is over. We are looking at a rally that has potential to extend farther than anyone thinks. Cheap money and the chase for yield will do that to investors. Remember, when bad news stalls markets and they go higher you are in a bull market. This run will last until it doesn’t, it’s that simple.
Long calls stayed on top of the leaderboard for the 22nd week in a row. The rest of the top five is more mixed with long puts moving into the number two spot. Followed by bear calls, bull put spreads and bull puts. The key to watch is the falling VIX which continues to disintegrate trading at 18. However, the actual trade value looks to be under 10.
The bullish symbols remain in the tech sector with the QQQ on top once again. Other symbols that continue with bullish activities are, AAPL, TSLA, AMZN and SQ. All four with earnings the next couple of weeks, which could be the reason for the bullish activity. Be careful with those symbols because they are inflated with the anticipation of earnings.
The bear list begins with AXP and includes the SPY, MSFT, AMD, VXX and DIA. What we can assume from the action is the bears symbols are Dow related which is consistent with a continuation of the bull market.
Always keep in mind that predicting markets is a fool’s game. Follow the trend and price action without opinion.
Todd “Bubba” Horwitz
BubbaTrading.com