Todd Horwitz Chief Strategist BubbaTrading.com
Be Prepared not Surprised.
Markets are in the heart of the dog days of summer. They are as quiet as it gets and making new highs. Although the Russel continues to struggle in the middle of a range. Dow, S+P and Nasdaq are at or on new highs.
The next couple of weeks should see the markets slow even more. As we approach the Labor Day Holiday there is no major news on the horizon except for the FED Meeting in Jackson Hole, Wyoming.
All expectations are that the FED will stay the course which could keep the rally rolling. The biggest problem appears to be the duration spreads and their relationship to the equity markets. They are the widest in 20 years.
Call buying remains on top of the option world with a collapsing VIX. Markets are starting to see some Put buying but Put selling outweighs the effect on volatility. Rounding out the top five are Bear calls and Bull put spreads.
Tech continues to dominate the rally with AAPL, TSLA, NVDA, DKNG and AMD leading the way. The bears are pushing on the SPY, TLT, GDXJ, GOLD and XLE. Basically, we are seeing Bonds and metals pressured.
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