Todd Horwitz Commentry

Market Report Quiet Holiday Week

Quiet holiday trade, beware of the short squeeze

Market Report Quiet Holiday Week



Todd Horwitz Chief Strategist

Be Prepared not Surprised.


As expected, markets were quiet this week with a lean to the upside. That happened to be consistent with the trend and dull markets. There is an old saying, “never sell into a dull market”, more often than not you will not like the results.


There are many shorts positions out there as well which could lead to a big rally. However, there are too many reasons for concern. We would expect a short squeeze blowoff followed by a market meltdown. Remember, we don’t predict, this is just an opinion.


As the year is quickly coming to an end, we could still see the Santa Claus rally. It is hard to imagine that the Christmas sales are going to be good. Costs have risen and supply is short, not a good combination.


Option traders have a mixed bag, we know that call buying is always at the top of the list. The rest of the top five are premium sellers of Iron Condors, bears buying Puts, bulls sell Bull and Bull Put Spreads. Add to the trade a falling VIX that is now hovering around 20.


The Bulls were buying AAPL, SPY, AMD, QQQ, and QQQ. The Bears were selling TSLA, BILI, DIS, MARA, and XLF. This shows how quiet and mixed the markets are.


Remember, we can’t predict what’s next, but the price action will give indications and guide us in the right direction. All signs are starting to point lower however flexibility is the key to trading successfully.


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

Bubba Trading is proud to announce that Tradier is sponsoring the livestream of our Las Vegas event December 6th – 8th. This event is always a tremendous success where we train on all facets of trading and investing.

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