Market Report Big Jobs Report, markets consolidate
Todd Horwitz Chief Strategist BubbaTrading.com
Be Prepared not Surprised.
The trend in markets continues higher although they are in consolidation now. It is hard to believe that through all the bad economic data, inflation, supply chain and other things that the trend continues higher.
Friday was the monthly jobs report and was in theory a huge beat many called amazing. However, when looking deeper at the numbers it turns out they are only adding jobs lost during Covid. We are not growing based on the GDP numbers and are in a recession.
We must remember that the markets and the economy are not always correlated, bad economic data can already be priced in. Currently the tape is bullish, and the trend is higher, we can’t fight the tape or the trend.
Option traders are playing the bullish side of the market, selling puts, and put spreads. Selling iron condors has reached the top 5 as well as the usual number one strategy of call buying. The VIX continues to tumble indicating option traders are willing to sell to open.
The Bulls were buying OXY, HAL, AMZN, BYND, and AMD. The bears were selling FFIE, TLT, SPX, RUT, and AARK. Basically, a mixed bag of trades with the bulls appearing to focus on oil.
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