Market Report Bears get smoked
By
Todd Horwitz Chief Strategist BubbaTrading.com
Be Prepared not Surprised.
Once again, the bears get smoked as markets find a bottom and reverse. Just a week ago the bears appeared to be grabbing control, ready to take markers much lower. However, the bulls made another stand and have resumed control.
History tells us the natural world order is the bulls will have control. Hence, the market return year over year is about 10%. This is an average occurrence with a few down years in between.
There are many reasons to believe the bears will once again grab control, inflation, supply chain, food shortage among other things. However, until further notice the street is ignoring the problems and pushing markets higher.
This may turn out to be a house of cards, but the bulls are buying, AMD, NVDA, AAPL, GME, and FB. They are buying calls, selling puts, and put spreads, selling iron condors, and buying call spreads. The bears are selling SPY, QQQ, NVAX, TSLA, and AMZN.
The story is interesting but not logical. Of course, no one ever said the markets must be logical. In fact, the great quote from Wall Street, Markets can remain irrational, longer than we can remain solvent.
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