Market Report Despite the Rally, Bears in Charge

Market Report Despite the Rally, Bears in Charge

By

Todd Horwitz Chief Strategist BubbaTrading.com

Be Prepared not Surprised.

Last week we asked the question, has the selloff begun? Despite the rally the answer is yes. There are so many issues that will act as headwinds, inflation, rising rates, failing housing sales and more.

The rally was simply a short squeeze from oversold conditions. This action was fairly predictable after three weeks down. All the major indices have reached resistance and should fail from here.

There is always concern on direction, but all signs point to a larger selloff. This week will bring the jobs number among other news. Crude Oil looks like it has reversed to the upside which will add more pressure to the consumer.

Option traders continue to buy calls which is neither bullish nor bearish because we don’t know the other side of the trade. We have seen Put Buyers, Iron Condor sellers, Call sellers, and Put buyers.

The bulls were buying, TSLA, IWM, STZ, AMD, and OXY. The bears were selling SPXW, SPY, SPX, GOOG, and JPM. A mixed bag of stock pickers, same confusion of the general markets.

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