Todd Horwitz - Chief Strategist BubbaTrading.com
Be Prepared not Surprised.
The S+P made a new closing high while the Dow and Nasdaq rallied. The Russell also joined in but not to the same degree.
As we head into the last week of 2021, what should we expect this week and into 2022? We know that predictions are for fools that often end up broke trying to outguess and outsmart the tape action. There are many concerns for markets including inflation and how it will be handled in 2022. We must remember to let the market and price action guide us.
Looking at the option strategies from last week, call buying remained on top which is no surprise based on the market action. We urge you to remember, we don’t know the other side of the trade, what appears bullish could be bearish. Put buyers were back but not enough to rally the VIX. Bull Puts and spreads along with call selling were the top strategies for the week.
The bulls were running after AAPL, TSLA, AMD, MSFT and NVDA while the bears were pushing XLE, QQQ, FAS, WDC and AMZN. Really a mixed picture with no real significance. Watch the price action and the volume, this is the last week of the year and a holiday type 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
BubbaTrading.com