Todd Horwitz Chief Strategist BubbaTrading.com
Be Prepared not Surprised.
Last week was packed with economic data, the FED, PPI, and triple witching expiration. What looked like a market that was going to continue higher turned out to be a possible trend change and possibly the end of the bull market.
We do not predict we watch the price action, and this week will go a long way towards determining where they go next. We recognize a trend change in the DOW and the S+P is close, but the Nasdaq is still full speed ahead. Typically, the indices end up going in the same direction, which one is right?
Although we are seeing many reasons to believe that the markets are ready to turn but the option markets appear to be sending a different message. The strategies continue to be bullish with call buying leading the way again. Rounding out the top five are bullish as well with bull puts and bull put spreads.
Making the bull case are AAPL, ROKU, RMO, TSAL and BABA. On the bear side there is QQQ, SPY, DOCU, NTAP and TTWO. We are seeing a mixed bag of information which ties in with the consolidating markets on the verge of a trend change.
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