Tradier Rundown

Market Report: Bear Market Has Begun

Markets entering bear territory

Todd Horwitz Chief Strategist

Be Prepared not Surprised.

Investors and traders like gamblers will remember what they saw last. In the case of the markets, we saw the rip your face off rally on Friday which was a dramatic turnaround. All four major indices from down big to up big. This is a natural reaction in bear markets, vicious rallies.

History shows us that the best rallies come in bear markets as participants chase the rally while the shorts get squeezed. These are selling opportunities and should be used as such until the current trend changes.

We are trend traders, and the trend is lower until its not. We will be looking to sell rallies and as always have our long-term investments hedged through options as we accumulate more stock on the way down. Remember, market history tells us that markets go up 8% year over year just not every year.

Option strategies remain constant with Call buyers on top followed by Put buyers, Bull put spreads, Short Calls and Call spreads. The key here, what are the call buyers really doing which is always unknown.

On the bull side AAPL, NVDA, TSLA, MSFT and GLD lead the way while the bears are focusing on SPY, LCID, DASH, BILI and XLE. With Jobs this week and other data it could be a crazy week with a lower trend.

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

Similar posts

Subscribe to our newsletter today!