Market Report Bulls Grab Control
Todd Horwitz Chief Strategist BubbaTrading.com
Be Prepared not Surprised.
From the depths of destruction, the bulls have once again seized control of the markets. We are still in a bear market, but the bulls are trying hard to reverse that. The next ten days will tell the story for the longer term.
Although we see the rally there are some issues to contend with. There is a FED Meeting and announcement Wednesday, Jobs number on Friday and the Election on Tuesday the 8th. All these events can push the markets in either direction.
The biggest problem appears to be the lack of liquidity which creates many artificial moves. Volume is light creating the possibility that we are seeing positioning for the results of the election. Volatility has been hit hard which also indicates another push higher.
Option traders have changed to a more bullish posture with Put sellers back along with put spread sellers. The positioning is not full bull mode, but we could see a push in either direction with the markets leaning bullish right now.
Last week the bulls were buying, MSFT, SPY, AAPL, AMZN, and NVDA. The bears were selling TWTR, SPXW, XLF, GLD, and SOXL. One thing for sure, it’s going to be an interesting week.
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
Bubba Trading is proud to announce that Tradier is sponsoring the livestream of our Las Vegas event December 6th – 8th. This event is always a tremendous success where we train on all facets of trading and investing.