Market Report Bears continue pressure
By
Todd Horwitz Chief Strategist BubbaTrading.com
Be Prepared not Surprised.
*** A special note, Tradier is sponsoring our Las Vegas event which is at Circa starting on December 5th and ends December 8th. The event kicks off Monday night December 5th with a cocktail party, followed by class December 6th,7th, and 8th.
We are now seeing a full-blown bear market which shows no signs of slowing. Between the FED hiking rates into a recession, a weak supply chain, and many other issues stocks have given way to sellers.
This is a crucial time for markets, they could see the selling accelerate. There is a high probability of a selloff somewhere near the 50-60% range. The markets are about halfway there with little chance of a major turnaround anytime soon.
The VIX is on the rise pushing the 30 level, but this has not been with panic selling but with a consistent downtrend. The put sellers have disappeared, buying options to open has become the leader. We are witnessing a global recession which could create the anticipated panic.
Calls remain the number one strategy which has no meaning by itself because we do not know the other side of the trade. What we do know, the options market is signaling bearishness. Put buyers, Put Spread buyers along will Call, and Call spread selling.
The bulls were buying AAPL, NVDA, SPX, GOOGL, and TNA. The bears were selling SPY, SPX, AMD, SBUX, and SAVA. The picture is bleak, the bears are in complete control. Don’t be surprised if there is a deadcat bounce next week, which will be a selling opportunity.
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
*** A special note, Tradier is sponsoring our Las Vegas event which is at Circa starting on December 5th and ends December 8th. The event kicks off Monday night December 5th with a cocktail party, followed by class December 6th,7th, and 8th.