Market Report Has the selloff begun?

Market Report Has the selloff begun?

By

Todd Horwitz Chief Strategist BubbaTrading.com

Be Prepared not Surprised.

Last week we asked the question, will support hold? The markets answered with a resounding no. The indexes have broken through support and now look headed much lower.

There will be a deadcat bounce at some point but with all the economic news, the FED hiking rates again, the path of least resistance is down. The only question remaining is how low they can go. We can’t answer that however we know that there is a lot of room to the downside.

We have no bullish signs, runaway inflation, and the FED hiking into a recession. We don’t predict but all signs point to an ugly period in front of us. The markets will answer all the questions just be prepared.

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, GOOGL, NVDA, UNP, INTC, and SPX. The bears were selling TSLA, SPY, QQQ, IWM, and W. 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