Market Report Quarter Ends with a Bang
Markets close month and quarter with a huge rally
Market Report Quarter Ends with a Bang
By
Todd Horwitz Chief Strategist BubbaTrading.com
Be Prepared not Surprised.
Just when you thought the markets were going to collapse, we see a huge rally. Nasdaq has made a new high for 2023. All the indices have shown strength and have reversed their trend to higher.
If you read charts and understand how the market work, we are seeing the classic pattern of consolidation. Markets have been in a wide sweeping consolidation pattern for over a year. Support is met with buyers and resistance with sellers.
Markets trade in different phases, 65% of the time they consolidate. Eventually they will breakout to a trend either up or down which will last until it doesn’t. Most markets end on a blowoff type of move driven by fear or greed.
Interestingly enough, put buyers led the week followed closely by call buyers. Rounding out the top five, selling Iron Condors, Bull Puts and Bull Put spreads. The VIX has fallen back to the lows.
The bulls were buying, AI, AAPL, AMZN, TSLA, and MSFT. The bears were selling IWM, SPY, QQQ, GOOGL, and SQ. Nasdaq very strong followed by weakness everywhere else.
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