Market Report Hot CPI and PPI, markets flat
Todd Horwitz Chief Strategist BubbaTrading.com
Be Prepared not Surprised.
Last week saw inflation numbers continue to explode. We saw a CPI at 9.1 and a PPI at 11.3. These are not healthy for a struggling economy and should continue to force the FED’s hand. Rates should continue to rise putting pressure on equities.
We are in a bear market but have yet to get confirmation from the genius economists that we are in a recession. The simple fact, we are in a recession with another negative quarter do for GDP. Growth is almost nonexistent, yet our leaders continue to bury their heads in the sand.
Although markets were basically flat this week option traders were playing the bear side. Except for call buying, we say put and put spread buyers, call and call spread sellers. The VIX closed the week on support which could lead to a hard sell off.
The bulls were buying BABA, APRN, AAPL, NVDA, MSFT, while the bears were selling SPY, QQQ, DIS, SPXW, and IWM. It appears the bulls are trying to pick their spots while the bears are selling the broad market.
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