Market Report Big Rally attempt put down
By
Todd Horwitz Chief Strategist BubbaTrading.com
Be Prepared not Surprised.
*** A special note, Tradier is sponsoring our Las Vegas event which is at Circa starting on December 5th and ends December 8th. The event kicks off Monday night December 5th with a cocktail party, followed by class December 6th,7th, and 8th.
Markets started off the new month and quarter with a huge rally which lasted until Thursday. But on Friday the markets gave back most of the gains for the week and tested last week’s lows.
Friday saw the Jobs Report with another beat which may not have been enough for what the markets were pricing in. The selling began after the jobs and never stopped. It appears the bears are still in full control.
You must remember markets were very oversold and a rally was due. It gave the funds the perfect opportunity last week to sell everything and take the write down in the third quarter. Typical for new quarters new money buyers’ step in but the trend is down, nothing has changed that.
Options remained more in the bear camp with Put buyers, call sellers along with Put spread buyers and call spread sellers. The VIX performed very well considering the rally. Expect option strategies to remain bearish.
The bulls were buying NVDA, IWM, MSFT, SPX, and AAPL while the bears were selling SPY, SPXW, TWTR, QQQ, and TLT. Very consistent with a bear market, stock pickers and index sellers.
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
*** A special note, Tradier is sponsoring our Las Vegas event which is at Circa starting on December 5th and ends December 8th. The event kicks off Monday night December 5th with a cocktail party, followed by class December 6th,7th, and 8th.