Market Report No Liquidity, Mixed Action
By
Todd Horwitz Chief Strategist BubbaTrading.com
Be Prepared not Surprised.
*** 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.
For the past couple of weeks, the markets have been whipping around on light volume and zero liquidity. Many thought markets were waiting on the FED or the Jobs number which has been proved wrong. It appears the markets are waiting on Tuesday’s election.
The election is the big wild card with markets. History tells us there should be a change in leadership in the house which would at worst put back the checks and balance system we have all grown up with. Either way we should start to see markets regain the lost liquidity and finally breakout of this wide sweeping consolidation.
We don’t predict market direction but it’s hard to see a major uptrend anytime soon with the economy in bad shape. Inflation is still out of control, food and energy prices continue to rise. Mortgage rates have exploded which is putting a lot of weight on the housing market.
Options traders appear to be confused as well with the VIX falling hard. Call Buyers led the way as usual but the rest of the top five are mixed. Bull and Bear Puts, Call sellers along with premium sellers. Like markets options will resolve as well.
The bulls were buying AMZN, NVDA, QQQ, GOOGL, and FCX which looks like bottom fishing considering these stocks are near lows. The bears were selling indexes, SPY, IWM, TLT, GLD, and XLF. It’s going to get interesting, be prepared to react.
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
*** 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.