Market Report It’s a Bear Market
By
Todd Horwitz Chief Strategist BubbaTrading.com
Be Prepared not Surprised.
What we have here is a bear market with no relief in sight. The bears are in full control except for the occasional short squeeze, bear market rally. Markets appear to have a lot more room on the downside, they will get oversold, rally, and sell off again.
The economic data is bad, it is also inaccurate. The PPI and CPI which came out this week are nowhere near accurate. They should be multiplied by three to be accurate. The key to understanding a recession and inflation is simply look in your own finances. You know those numbers are accurate.
October has always been a volatile month. As we approach the middle of October, we are also approaching a seasonably bullish time. However, there is no guarantee that this year will be bullish. Bear markets don’t know the time of year, they move off price action.
Options were being bought heavily as we can tell from the VIX. Except for the usual call buying the rest of the top five were all bearish trades. Put and Put Spread buyers, call and call spread sellers. This all plays out in the market price action.
The bulls were buying TNA, GOOGL, SPX, TQQQ, and COST which is a sign of gambling and safety plays. While the bears were selling the indexes again with SPY, IWM, QQQ, TWTR, and SPXW. Typical bear market action.
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
BubbaTrading.com
Bubba Trading is proud to announce that Tradier is sponsoring the livestream of our Las Vegas event December 6th – 8th. This event is always a tremendous success where we train on all facets of trading and investing.