Market Report Nothing can stop the bear

Market Report Nothing can stop the bear

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 5^th and ends December 8^th. The event kicks off Monday night December 5^th with a cocktail party, followed by class December 6^th,7^th, and 8^th.

If you had any questions about the markets whether the bears are in control, this week should have answered them. Not only are the markets falling hard but the Bank of England showed some panic on Wednesday by intervening. This is never a good sign and indicates more trouble to come.

The biggest signal that the bears are running the show was the short covering rip tour face off rally we saw on Wednesday. That action is classic in a bear market, dynamic rallies that fail miserably. Every rally attempt has been met by sellers.

One important thing to watch is how markets open. Typically bear markets open flat to higher and get sold into. There will be sharp rallies that should be sold until the price action changes. Do not panic or sell into the hole, use logic to decide your next move.

The VIX is starting to trend higher and failed right where it should have. As always calls lead the way but the next four strategies are bearish in design. Puts and put spreads, short calls, and call spreads. Remember, long calls are not necessarily bullish.

The bulls were buying NVDA, OXY, TNA, SPX, and IWM. The bears were selling QQQ, SPXW, SPY, TSLA, and SAVA. This appears to be a very broad selloff that has legs. Watch the price action, pick your spots and make the trade

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 5^th and ends December 8^th. The event kicks off Monday night December 5^th with a cocktail party, followed by class December 6^th,7^th, and 8^th.