Todd Horwitz Chief Strategist BubbaTrading.com
Be Prepared not Surprised.
Markets got hammered last week, fortunately it was a shortened holiday week. However, markets appear to be in trouble especially the Nasdaq that is down 10% this year.
There are many issues that are driving the pressure on these markets especially inflation coupled with the supply chain breakdown. Rising interest rates with a clueless FED should force the sellers to continue to push this market lower.
By all accounts the markets appear to be breaking down threatening the long-term bull market. We will not predict that markets are going lower however the price action suggests there is a lot of room to the downside.
Option traders continue to buy calls, we remind you that buying calls doesn’t have to be bullish they could be to cover short stock creating a synthetic put. The rest of the top 5 strategies for the week are mixed between Put and Call sellers either naked or through spreads.
The Bulls were buying AAPL, GLD, CLF, MSFT and CWH which is a mixed bag. The bears are buying VXX, selling QQQ, IWM, CHWY and LCID. The upcoming week could be wild, we urge you to be careful. Understand that bear markets bring the most vicious rallies. Look to sell the rally.
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