Market Report FED, Jobs, Sell Off
By
Todd Horwitz Chief Strategist BubbaTrading.com
Be Prepared not Surprised.
What a crazy week for markets that was loaded with news. It started out with the FED on Wednesday that delivered a mixed message. Initially, traders took the information as Dovish, and the markets soared to their high of the week.
Thursday the rally continued until late in the day. After, AAPL, AMZN, and GOOGL reported earnings which were not up to expectations. The reversal started after the close sending the NASDAQ down big.
Friday in pre-market trade the markets were running and then came the jobs report. Markets were expecting 185,000 jobs but the report came out at 514,000. This initially sent markets much lower. During the trading day several rally attempts were made. All rallies failed, markets closed on or near their lows.
The bullish condition was confirmed by the option markets with a falling VIX. Call buyers led the way followed by Put and Put Spread sellers. There were some put buyers and Iron Condor sellers. The overall option world is leaning bullish.
The bulls were buying AMZN, IWM, JNJ, GOOGL, and TSLA while the bears were selling SPY, QQQ, SPXW, CVNA, and TNA. The Nasdaq will probably remain under pressure and could weigh down the rest.
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