Last week the markets looked ready to collapse and reverse trend. Monday saw huge follow through to the downside.
Market Report: New high, Bulls Charge
The bulls have regained control, Dow, S+P and Nasdaq close on record highs.
By Todd Horwitz Chief Strategist BubbaTrading.com
Be Prepared not Surprised.
The bulls have regained control, Dow, S+P and Nasdaq close on record highs. The action has been interesting on Friday October 23rd the markets printed new highs, pulled back and Friday October 30th closed at all-time highs.
It appears The Santa Claus rally is early. The question will be, can the rally last. The price action suggests that the rally should continue. We must remember that money goes where it is best treated which is still currently the equity market.
There are many reasons that the markets should collapse, crashing lumber and Copper prices, mass inflation, new tax proposal and mush more. However, the markets are higher reminding us that the market is always right and those who trade the news, lose.
Call buyers remain in control although we have no idea what the other side of the position is. We can assume that the number one option strategy 90% of the time will be call buyers, the rest of the top five will rotate. Bull Puts, Bull Put Spreads are 2 and 3, while Bear Call Spreads and Bear Puts round out the top five.
Tech continues to dominate the bull side of the market with TSLA, QQQ, AAPL, LCID and AMD at the top. The bears are banking on MSFT, SPY, WDC, AMC and CWH. Remember, markets don’t announce themselves and anything can happen, but the bulls are in control
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
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