Bear markets bring the most vicious rallies.
Market Report Are the tops in place
Earnings, Market Tops
Market Report Are the tops in place.
Todd Horwitz Chief Strategist BubbaTrading.com
Be Prepared not Surprised.
Last week showed us a lot of information about where the markets may be headed next. We saw the inflation numbers which remain horrendous and inaccurate. Remember, government numbers do not use the correct information for gaging inflation. Food and energy only count for 4%, which we all know is wrong.
Friday saw the start of earnings season with JPM reporting. They beat lowered expectations handily. Earnings season has become more of an art than fact, companies create an expectation that they think they can beat.
All this brings us to the question, have markets topped? It is our opinion that is indeed the story. The price action combined with the data suggests the rally is over and selling should accelerate.
Call Buyer took over the top spot once again, followed by premium sellers, Bear Puts, Bear Put and Bear Call Spreads. Even the option markets are confused and under stress. The VIX has fallen back to the lows.
The bulls were buying SPY, SPXW, IBM, GLD, and GOOGL. The bears were selling MSFT, SQ, RIVN, FSR, and QQQ. Nasdaq very strong followed by weakness everywhere else.
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