Todd Horwitz Chief Strategist BubbaTrading.com
Be Prepared not Surprised.
Just another week in the markets, ho hum they made new highs once again. Complacency reigns over this market, investors cannot get in fast enough. The VIX continues to fall making new lows once again.
The term being used for markets today is TINA, there is no alternative. This action is what eventually will create the problem in markets and why there is a major sell off looming. Remember we cannot time the market we can only follow the price action. For now, expect new highs to continue, especially coming into historically the most bullish time of the year.
We know that the driver of this market is the FED and cheap money allowing the very wealthy to keep charging ahead. The average investor does not get the same edge, but their portfolios are growing which brings the question is it real or just the added money supply?
What we do know is that options strategies remain bullish with long calls, bull puts, bull put spreads, bull call spreads. Obviously, the bulls are the strong hands and will probably continue to push as they run over the bears. Until something changes, we expect the new highs to continue.
Tech continues to lead and pick up strength, 9 of 10 of the top bullish symbols are tech including, QQQ, AAPL, FB, TSLA and AMD. The bears are selling SPY, XLE, COST, GDXJ and X. Based on the action there are no surprises.
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