Be Prepared not Surprised.
Just when the bears thought it was safe, the bulls buried them again charging higher. The downtrend we were seeing last week has reversed and the bulls are the strong hands.
Nothing appears to bother the bulls, overwhelming debt, hyperinflation, and the new tax proposal. Through the bad news the buyers came back in force showing once again you can’t fight the FED. The one thing everyone must remember is the market is always right.
The fourth quarter is typically a big quarter in either direction, many of the biggest down moves have come in the 4th quarter. For now, the bulls have control and can push markets higher despite the light volume.
Call Buying leads the way once again with a mixed bag of option trades in the top 5. Bull Puts and Spreads are among the top five with Bear Puts and Bear calls. Looks like a mixed bag filled with complacency
Tech has resumed the leadership for the bulls with TSLA, AMD, NVDA, AAPL and ROKU leading the way. The bears are being led by SPY, NRXP, VXX, GS and CHWY. The VIX continues to fall which could continue to fuel the bull market.
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