Market Report: Bears get hammered

Todd Horwitz Chief Strategist BubbaTrading.com

Be Prepared not Surprised.

Just when the bears thought it was safe to jump into the water the bulls seized control putting up one of the biggest weeks in years. After getting hammered on Monday the markets ran Tuesday thru Friday closing on highs of the week.

From the bottom the markets rallied about 8% despite the FED hiking a quarter point and threatening an additional seven hikes on a moments notice. Volume was very light which is unusual during a triple witching week. 

Too many cases can be made for the bears however the bulls are in full control. Remember, markets don’t have to make sense. Price always rules the day, news is noise and predicting is for the carnival hucksters. No matter how bad the economy markets are going higher. 

There was some crazy action in the VXX this week and bearish action in the options market. I always warn you that the trades you see don’t always tell the story, only price gives the details. Call buyers led the way followed but Put and Put spread buyers, and Call sellers.

The bulls were led by tech with AAPL, AMD, TSLA, NVDA and BABA leading the way. The Bears were selling SPY, QQQ, GLD, IWM and SPX indicating and appetite for risk. The full story will be told but for now up they go.  

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

BubbaTrading.com