Market Report Bears crushing Bulls
Todd Horwitz Chief Strategist BubbaTrading.com
Be Prepared not Surprised.
2022 has been the year of the bear, since the calendar turned, sellers have taken control. Every rally is met by the sellers as markets make lower highs and lower lows. This is classic action in a down trending market. There appears to be no relief in sight.
Although we don’t trade using fundamentals, one look at the picture spells problems for global market. From rising inflation to rising interest rates, the breakdown of the supply chain and more, we are surrounded with negative information.
Looking ahead the selling should continue and markets have a chance to double the losses seen in 2022. There is very little to get excited about for the bulls. It appears that the only buyers are retail traders that the funds, commercials, and institutional traders are carrying but selling into them.
Last week the option strategies we bearish, except for call buying which we can’t determine why they are buying, options combinations can create synthetic positions. We are seeing call selling, put, and put spread buying which is negative. The VIX did fall however it appears the new bottom is 20-25.
Bulls were buying ISRG, MSTR, SPY, AAPL, and TNA while the bears were selling IWM, SPXW, MARA, DISH and QQQ. The picture is ugly and will get worse. Remember, bear markets create the most devastating rallies which act as selling opportunities.
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