Market Report Bulls trying as options diverge

Market Report Bulls trying as options diverge

By

Todd Horwitz Chief Strategist BubbaTrading.com

Be Prepared not Surprised.

Markets experienced another set of twists and turns. The bears appeared to be in control and then came the holiday week. Light volume, declining volatility and markets pushed higher. Some trends were reversed, some stayed short. However, the picture has become cloudy.

On the surface we might assume we saw a short squeeze; however, volume was so light it is hard to buy into that theory. Economic data is horrible, supply chain has seen no improvement and inflation is skyrocketing.

With last weeks options strategies diverging from the markets remaining bearish, traders are in a quandary. Call buyers at the top is always the same. The rest of the top five are negative, put and put spread buying, call selling.

Earnings have been awful, the bulls were buying AAPL, TNA, SNAP, ASO, and USPT. The bears went after GME, NVDA, XLE, TWTR, and MSTR. Like everything else, we have a mixed picture.

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