Market Report Options and Markets mixed up

Market Report Options and Markets mixed up

By

Todd Horwitz Chief Strategist BubbaTrading.com

Be Prepared not Surprised.

As we approach the holiday season markets are waiting or hoping for the Santa Claus rally. Historically markets are strong through the holiday season. However, this year it appears markets are confused. Will we see a rally or is everyone getting coal?

So far, the holiday season has brought us no volume, no liquidity, and no trade. We are witnessing wide sweeping consolidation which is the worst pattern for traders. There are too many starts and stops.

The week ahead could bring a load of cheer or coal with the CPI number and an FOMC announcement. You can bet that firms are taking positions on their information. We could see excitement or a big dud.

Option traders have been focusing in on selling premium with Iron Condors leading the way. Spread selling is also at the top of the list and with a falling VIX, markets could go either way.

The bulls were buying AAPL, IBM, SPY, AMZN, and OXY. The bears were selling, QQQ, MARA, XLF, SGIX, and SI. Kind of a mixed bag with little direction.

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