Market Report 2022 is Over, what will 2023 Bring
By
Todd Horwitz Chief Strategist BubbaTrading.com
Be Prepared not Surprised.
The year has ended and 2022 is in the books. 2022 was a year that lacked volume and market interest closing at a loss. The biggest beating came in the Nasdaq which lost 33% and the Dow the best performer losing only 8%.
As we look ahead at 2023 should we have enthusiasm or fear? Unfortunately, no one has that answer, however there are more reasons for concern than optimism. Inflation is still out of control while we continue to lose jobs. There is not a lot to get excited about with the exception that history tells us the markets go up 8.5% year over year.
2022 brought a new level of volatility with the VIX settling above 20 for the year up from 10 in 2021. The options markets showed the same confusion with a constant rotation from bullish to bearish. 2023 should be exciting and we expect the markets to trend.
Last week was a mixed market for options with bulls, bears and premium sellers. Call and Put buyers led the way while Iron Condors and Spreads followed nearby. The trend is down but we must wait for the markets to dictate direction.
The bulls were buying XLE, GLD, SPX, SI, and NIO while the bears were selling SPY, AMZN, IWM, SQ, and TSLA. The Nasdaq will probably remain under pressure and could weigh down the rest.
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