Todd Horwitz Chief Strategist BubbaTrading.com
Be Prepared not Surprised.
Last week we wrote about a trend change, this week we saw a big rally. The S+P and Dow both printed new highs before some sellers came in. Jerome Powell did the usual and threw some water on the rally with taper talk.
There are many warning signs however the market continues to toss them aside. Nothing seems to bother this market, inflation, debt, and other problems. Yet the market continues to go higher, and the selling appears to be over.
For now, nothing appears to be able to slow the markets. There are so many warning signs are clear, but markets ignore them. Of course, ignoring the warnings will eventually lead to disaster. However, there will be plenty of time to reverse when the trend changes
Calls stay atop the leaderboard which is no real surprise considering the various trades that can be made with calls. Bull Puts and Bull Put spreads follow closely. Rounding out the top five are Put buyers and Call sellers. The action remains bullish
Tech continues to lead the bulls with AAPL, QQQ, AMD, NVDA and TSLA. While the bears are trading WDC, IWM, CHWY and SPX. Included in the bear list is VXX which is actually a long in disguise.
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