Market Report Let the selling begin
Todd Horwitz Chief Strategist BubbaTrading.com
Be Prepared not Surprised.
The market has tried to rally for the past few weeks ignoring the horrible economy. No one cared about high inflation, the FED hiking rates into a recession. Of course, they have decided to change how a recession is classified but with a third quarter of negative GDP, how will they define it now?
Interest rates continue to rise, Chair Powell says we will have some pain. No matter what the current times are, the simple answer is to look at your own life first. Most are not keeping up with the rise in inflation. The housing market has started to crack, in other words we are starting to look like 2008 all over again.
The trend has reversed, and markets are clearly headed lower. Remember, bear market rallies are the most vicious high-powered rallies filled with short covering and shorts chasing the market. They tend to be great selling opportunities.
Calls remain the number one strategy, but we remind you that we do not know the other side of that trade. Rounding out the top five are all neutral or negative strategies. Bear Puts, Bear Call Spreads, Iron Condors, and Bear Calls.
The Bulls were buying NVDA, SPX, BBBY, IEF, and SDC. While the Bears were selling, SPY, GLD, SPXW, DIA, and QQQ. In other words, the selling was broad, and index based.
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
*** A special note, Tradier is sponsoring our Las Vegas event which is at Circa starting on December 5th and ends December 8th. The event kicks off Monday night December 5th with a cocktail party, followed by class December 6th,7th, and 8th.