Market Report Bear Market over?
Todd Horwitz Chief Strategist BubbaTrading.com
Be Prepared not Surprised.
There are many ways to look at the recent price action, the rally could be a deadcat bounce or the bear market is over. There is no 100% way to determine which it is, the economy is in trouble, and we have entered a recession.
We can never predict what is next, we can raise our probability by watching the price action instead of the news. Those who depend on pundits usually fail, news is to sell advertising not to help traders and investors. However, we are all experiencing the problems from high inflation.
Lat week saw some dramatic reactions to earnings, there were many misses, but the stocks held up. There were some dramatic beats which brings the question, beat or lowered expectations. We don’t know the answer, but it will playout over the next couple of weeks.
Option trades were somewhat mixed with their strategies this week. There were call and put buyers, put, and put spread sellers along with iron condor sellers. The action shows confusion in the trading world, meaning we can go either way.
The bulls were buying AAPL, NVDA, AMZN, IWM, and SFIX. The bears were selling SPY, BX, LCRX, DKNG, and GLD. Just another mixed bag with no real commitment to anything
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