Be Prepared not Surprised.
Markets had a relatively flat week and an instant replay from last week. Monday markets got clobbered while they tried to rally the rest of the week. The bears appear to be seizing control of the markets and looking for a push down.
We don’t predict market but the price action including the lower highs is an indication that the bull market is ending. Interestingly enough the VIX has been flat to lower through the selling. The action is typical in a market that is potentially changing directions.
There are many warning signs in markets from the collapsing prices in Lumber and Copper to the massive inflation that no one wants to acknowledge. Overwhelming debt, stimulus and an unstable government have not created any issues for markets, yet.
A bell isn’t rung when a bear market begins only the price action signals change. The options markets are showing more bearish info, except for call buying holding the top spot which does not necessarily bullish, investors could be buying calls and shorting stock. However, strategies 2-5 are bearish, put buying, call selling with put debit spreads.
The bulls are being led by, TSLA, AAPL, XLE, NVDA and AMAT. The Bears are being led by the symbols you would expect to lead a bear market. SPY, QQQ, GLD, SPCE and AMD. It should be interesting
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
Join us for our Monday Night Strategy call starting at 4:30 EST