Todd Horwitz Chief Strategist BubbaTrading.com
Be Prepared not Surprised.
The 3rd quarter is coming to an end with the 4th quarter 9 trading days away. Historically traders have the best periods in the 4th and 1st quarters. With the holidays over we can expect markets to see more volume and trading action.
The last couple of weeks markets have started to lose steam and the trends are potentially changing. Friday’s triple witching expiration saw heavy selling and a trend change in the Dow futures while the S+P, Nasdaq and Russell are close.
The options market has turned more negative as well with the VIX starting to climb. Although Call Buying is still the number 1 strategy with Put Buying, Call Spread selling, Call Selling and Put spread buying. The only bullish strategy of Call Buying is not necessarily bullish because we don’t know what the other side of the trade is.
The bulls are still buying Tech with DKNG, TSLA, AAPL PLTR and MSFT leading the way. The Bears are focusing SPCE, NRXP, ZM, QQQ and CHWY. The next few days will be key in whether the rally continues, or the trend is changing.
Remember, we can’t predict what’s next, but the price action will give indications and guide us in the right direction. All signs are starting to point lower however flexibility is the key to trading successfully.
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
BubbaTrading.com