Market Report Down they go.
Todd Horwitz Chief Strategist BubbaTrading.com
Be Prepared not Surprised.
What an ugly week for markets, they got hammered. The downtrend is clearly in place, support has been broken and there is a lot of room to the downside. The bears are firmly in control.
Inflation continues to rise and is at least three times the stated 6.5%, Crude Oil is on the rise. Suddenly there is bad news on banks and we are finding out that they are over leveraged once again.
The setup is eerily like 2008, the selling could accelerate. The economic issues are not going away, the FED continues to hike rates into a recession. Taxes are going up and employment is in trouble. Stagflation is a real concern.
Option traders are bearish although they 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, Call Spread and Call sellers, with Put buyers.
The bulls were buying, X, XLF, TSLA, AMZN, and PNC. The bears were selling IWM, SPY, QQQ, NVDA, and XSP. It appears that we are seeing bargain hunters in the banks and wholesale selling.
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