Market Report If you think it’s ugly now, wait
Todd Horwitz Chief Strategist BubbaTrading.com
Be Prepared not Surprised.
If you think the trading and price action has been ugly, wait there is more to come. The conditions in the economy have become so bad that there appears to be no way out.
Looking back, we know there is out of control inflation, no supply chain, and the upcoming food shortage. WMT and TGT had earnings and the stocks got clobbered down more than 30%. They were down because of the supply chain, not enough goods to sell.
Gas prices are spiraling out of control, housing is at 2008 levels and defaults are starting to show. There will be big, vicious, bear market rallies. These rallies are meant to be sold at resistance. Bear markets show potential opportunities, but they are traps. The trend is lower, there is no change in sight.
The option market stayed rather static this week, call buying led followed by put and put spread buyers, call and call spread sellers. The VIX has been advancing at a steady pace which indicates more selling to come.
The bulls were trying to buy WMT on the dip, GS, BYND, TQQQ, and QCOM. The bears were attacking, AMD, HCA, XLF, OXY, and RBLX. Remember, this is a bear market, don’t get caught chasing them down, sell rallies at resistance.
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