Todd Horwitz Chief Strategist BubbaTrading.com
Be Prepared not Surprised.
Once again, the bulls and bears have changed places with the bulls grabbing control. Like a great magic trick slight of hand has pushed markets higher. Volume has been light and volatility collapsing indicating higher prices.
Markets are moving up in the face of higher interests’ rates, runaway inflation, and the worst energy policy in history. For now, nothing can stop the bulls although cases can be made, price action is absolute.
It is no surprise that call buying is the leader which it is every week, however the next group tells us the story. Put sellers, put spread sellers, call spread buyers and other bullish strategies.
Tech has grabbed control with AAPL, NVDA, TSLA, FB and AMD leading the way. The bears are focusing in on SPY, QQQ, IWM, SPXW, and SPX. In other words, the bulls are grabbing higher risk assets and selling ETF’s.
Logically it is hard to believe that the bull market lives on however, the bulls are in control. We cannot predict, assume, or dictate what happens next, we can participate with the path of least resistance.
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