Market Report Bank Collapse, What’s Next?
Todd Horwitz Chief Strategist BubbaTrading.com
Be Prepared not Surprised.
What a week for the markets, even with the collapse of a few banks they managed to rally. We have written in the past that the banks were overleveraged and there would be trouble. Right now, markets remain in consolidation.
The week ahead has the FOMC reporting on Wednesday, this could be the news that has been driving the markets. It appears the markets are pricing no rate hike, if wrong we could see a monster selloff.
No matter what the markets do in the next few days there is trouble brewing. The economy is weak along with commodities which is not a healthy sign. Inflation is soaring and leading economic numbers have fallen for the 14th month in a row.
Option traders remain bearish, for the first week in months Put Buyers led the weekly trade. Call buyers were in second followed by Bull Put spreads, Iron condors and Bear Call Spreads. The VIX was higher for the week.
The bulls were buying, MSFT, AAPL, AMZN, AMC, and UNG. The bears were selling IWM, SPY, QQQ, XLE, and SQ. 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