Todd Horwitz Chief Strategist BubbaTrading.com
Be Prepared not Surprised.
Markets remain slow as we approach the end of summer. Last week markets were slightly lower with a one-day selloff after the FOMC minutes were released. The talk of tapering sent markets lower while remaining in consolidation.
Markets are in the dog days of summer in extended period of congestion. The markets are telling us that a big move is coming with direction to be determined. The trend is higher in all indexes except for the Russell.
The FED reports from Jackson Hole, Wyoming this week. There isn’t much expectation no matter what they say or do. The FED has been hinting towards tapering but usually back down when the markets react adversely. The biggest problem is the FED refuses to acknowledge inflation.
The option markets continue with a bullish sentiment, Call buying led the way again however the rest of the top 5 strategies for the week were mixed. Bull puts have slowed replaced by Bear puts and Calls. The VIX remains weak and shows no real signs of moving.
The bull symbols had a little variety this week with AAPL, SPY, NVDA, IWM and TSLA leading the way. On the Bear side commodity ETFs led the way with GLD, UNG, AG leading the way.
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