Market Report Like magic the rally continues

Market Report Like magic the rally continues

By

Todd Horwitz Chief Strategist BubbaTrading.com

Be Prepared not Surprised.

Like magic the markets continue to rally. It appears nothing matters, exploding inflation, falling home sales, rising rates and more. But here we are on three-month highs with no signs of weakness.

This is the key point on whether you are a trader, investor, or just gambling trying to interpret the news. As we have written many times, trading is about the price action and the clues it leaves behind.

No one knows how far this rally will travel, many point at low volume for a reason to short while others will point at the news. Both will be wrong on the bigger picture because they have no idea on how markets function.

Every week we look at the options action for clues on what’s next. Consistently call buyers lead the way but we explain that doesn’t mean anything. However, the rest of the strategies can be helpful. This week was a mixed bag with both put buyers and sellers, premium sellers using condors round out the top five.

The bulls were buying tech, AAPL, QQQ, NVDA, META, and VERU. The bears were selling BBBY, TNA, DHI, SDC, and BYND. The sellers were a mixed group, they sold small caps, retail, and many related items.

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