The winds and the trends have changes, sellers are now in charge and markets as a whole appear to be headed lower. Elizabeth is this the big one. We can’t answer that question with a simple yes or no. What we can say is based on our algorithm the trend has changed.
Where markets go from here over days weeks and months is anyone’s guess, however the trends are lower making a move to the downside a higher probability. You must remember, trends can change, and risk should always be calculated.
In the world of options, the top strategy was call buying which is the case close to 100% of the time, as we remind you call buying does not indicate direction. We never know what the other side of the trade is. The bears are becoming more active, with Put and Put Spread buying, call selling and Put selling moving well down the list
The bulls were focused on LVS, AMD, AAPL, QQQ and MU while the bears went after SPY, DKNG, ARKF, PLAY and DIA. As the year winds down markets could get very exciting, make sure you know your risk and don’t fight direction.
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.