Market Report Equities ready to tumble

Market Report Equities ready to tumble

By

Todd Horwitz Chief Strategist BubbaTrading.com

Be Prepared not Surprised.

January was a bullish month as buyers pushed markets higher, on light volume. Now that we are in February markets have weakened. The sellers appear to be grabbing control and a sell off is underway.

We are not predictors of markets, but the price action is signaling some pain and headwinds are near. The bogus economic numbers are a mirage, from CPI to Jobs the numbers are telling even though not reported correctly.

For now, patience, discipline, and defense are required. Volume is still very light as is participation. The real action will return with a sell off, they are drift higher, but resistance should hold. Add to that, commodities are starting to move, another bearish sign.

Options traders appear to be confused, Call buying leads the way but the balance of the top five are a mix of bullish and bearish. Put buyers with Put spread sellers. Iron Condors and bear calls. The VIX appears to have found a bottom as well.

The bulls were buying SPY, AMZN, GOOGL, BBBY, and AMC. The bears were selling, TLT, XSP, MSTR, SI, and QQQ. Notice some of the buyers are playing the MEME stocks.

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